On January 1, 2018 the new partnership audit rules become
effective. Proposed regulations were issued in January of this year
to provide broad-based guidance on the implementation and operation
of the new statutory regime, but those proposed regulations were
withdrawn in the same month due to the new administration's
position freezing proposed regulations and requiring agency review
before re-issuance. With a little over six months to go before the
new rules become effective, a considerable amount of uncertainty
associated remains and regulatory guidance is desperately needed.
At this point, gaining an understanding of the proposed/withdrawn
regulations is the best course of action, as there is no current
indication that the proposed rules will be altered in a material
way, if issued by the end of the year.
