Federal Register: IRS Reissues Centralized Partnership Audit Regulations

The Internal Revenue Service reissued proposed regulations concerning the new centralized partnership audit regime. The regulations, which would implement a Bipartisan Budget Act of 2015 provision on partnerships audits, were first proposed in January 2017 but were not published in the Federal Register. Under the centralized partnership audit regime, taxes on partnership income generally would be assessed and collected at the partnership and not the partner level.

The regulations delineate the following aspects of the centralized partnership regime:

• guidelines for eligible partnerships on opting out of the regime;
• important rules and procedures, including a requirement to designate a partnership representative with sole authority to act on behalf of the partnership; and