Kiplinger

Is Your Company Ready for the New Partnership Tax Audit Rules?

Partnerships are one of the most commonly used business and estate planning tools, and they come in a variety of wrappers or names, such as traditional partnerships, multimember LLCs, joint ventures, limited partnerships and limited liability partnerships. So, it's significant that starting this year, the way they are audited and taxed has undergone a sweeping change. The result: People operating under partnerships must update their agreements and be ready to cooperate with each other or face the possibility of paying higher taxes.

All partnership entities, even small companies with as few as two partners, members or shareholders, are affected by new audit rules put in place by the Bipartisan Budget Act of 2015. The law, which went into effect on Jan. 1, 2018, established new rules for the federal income tax audits of partnerships, LLCs, limited partnerships and S corporations. These rules require

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger3 min readLeadership & Mentoring
Why Do Incompetent People Become Business Leaders?
If you have ever had a manager, or perhaps even your CEO, who was not only incompetent but dishonest, manipulative, narcissistic and a first-class jerk and wondered how such a person could have attained their position, you are not alone. And, you've
Kiplinger4 min read
3 Money Tips for Busy Corporate Executives to Act on Now
Most corporate executives work hard for their money -- but devote little time to managing it. They are often traveling around the nation or the globe, cellphone in hand, constantly speaking to managers, clients and vendors, as well as sending and ret
Kiplinger9 min read
18 Worst Things to Buy During the Holidays
It's all too easy to get caught up in the holiday shopping frenzy. Stores are blaring your favorite holiday tunes. Santa is camped out near the food court with a long line of kids waiting to take a photo. And retailers are trying their hardest to get