Partnerships and LLCs: Audit Regime


Summary

This practice note discusses the critical provisions of the partnership audit regime under the Bipartisan Budget Act of 2015 (BBA), Pub. L. No. 114-74, I.R.C. § 6221 et seq., and warns of possible consequences that partners and partnerships may wish to avoid. In addition, this note suggests ways in which the partners can draft or amend their partnership agreements to help achieve the economic results intended, while avoiding the possible consequences of the BBA audit legislation.