Businesses across the nation are buzzing about Congressional
action on tax reform - action that may not even occur. And yet,
many partnerships and limited liability companies (LLCs) have not
yet delved into significant IRS audit rule changes that are certain
to go into effect next year. The changes, which will impact the
2018 tax year for partnerships and LLCs, will present owners with
new decisions about how to handle IRS audits and any adjustments
that may be required.
The updated IRS audit rules include new terminology, and will
require such steps as new elections and changes to partnership
agreements to account for a new audit landscape. The legislation
driving the rule changes was passed two years ago. The new rules,
embodied in proposed regulations re-issued last week, require
changes in partnership agreements and LLC operating agreements.
Starting with partnership returns for the 2018 tax year,
partnerships will experience changes in how IRS audit
