Rachel Partain Explores Partnership Representatives on Strafford Webinar

Description

Recent IRS rules create a ripple effect on partnership designations, operating agreements, and potential tax liability. Counsel and advisers must have detailed knowledge of the scope of a partnership representative's role to avoid adverse tax consequences.

The application of the Section 6223 requirement that partnerships designate a representative with sole authority to act on behalf of the entity in matters related to IRS examinations requires careful consideration of a variety of factors. As a result, many partnerships modified existing partnership agreements and implemented a variety of compliance mechanisms to avoid unintended tax consequences in case of an IRS audit.

The final regulations provide clarity on essential items of concern, including allowing a disregarded entity to serve as a representative of the partnership and the removal of the capacity-to-act requirement for designated representatives along with extensive guidance on removing or replacing a partnership representative. The regs provide a roadmap for tax professionals to advise partnership clients on ensuring that the partnership representative can appropriately respond to the partnership's potential tax issues.

Listen as our experienced panel provides a thorough and practical guide to the IRS regulations on partnership representatives under Section 6223, IRS procedural and administrative processes for audits, notice requirements, and other high-priority considerations for partnerships.

Outline

1. Overview of the IRS partnership audit regime
2. Selection and responsibility of partnership representatives under Section 6223
3. IRS final Section 6223 regulations
4. Designating a disregarded entity as a partnership representative
5. Failure to designate an eligible party as a partnership representative
6. Terminating/replacing partnership representative
7. Best practices and planning considerations for counsel in light of the final regulations