A federal freeze on new and pending regulations is forcing states to delay introducing legislation to conform with a new federal law for auditing partnerships, leaving taxpayers with unanswered questions on if, when and how to amend their partnership agreements.
This could potentially leave partnerships being subject to two different audit regimes, with vastly different requirements for partnerships, if states are unable to conform with the federal statute by the time the latter goes into effect, according to Charles Ruchelman of Caplin & Drysdale, Chtd.
“Partnerships still need to amend their agreements and put things in place now. So there should be some recognition by states that they can’t wait forever to do something, either to enact law for state purposes or speak to the issue in some other way,” Ruchelman said.
For more information on the new partnership audit rule, please visit www.partnershiprepresentative.com.
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Excerpt taken from the article “Partnership Audit Rule Freeze Causing Confusion For States” by Vidya Kauri for Law360.