Family Office Considerations For Partnership Audits

Families and Family Offices engaged in managing privately held capital often use partnerships to consolidate and aggregate capital from related and/or unrelated parties and trusts. This is true for family investment programs, joint ventures, and pooled capital and or club deals. In any case, those managing any partnership, whether a general partner of a limited partnership, a manager of a limited liability company taxed as a partnership or any variation on either of these structures (such as limited liability limited partnerships, series limited liability companies and other variations) need to be aware of developments and evolutions in the way the IRS reviews and audits partnerships. Since Family Offices may be in a position of management, this is a particularly sensitive issue for family office professionals.