CLEVELAND, Aug. 18, 2017 /PRNewswire/ -- McDonald Hopkins LLC, a business advisory and advocacy law firm, has launched a new partnership audit services practice focus ahead of the upcoming changes being implemented by the IRS.
As part of the Bipartisan Budget Act of 2015, the federal government enacted sweeping changes to how the IRS audits partnerships and LLCs. Due to the changes, all partnership agreements and all operating agreements for an LLC taxed as a partnership should be reviewed and amended.
The new audit regime, which takes effect Jan. 1, 2018, is designed to raise tax revenue and make it easier for the IRS to audit partnerships and LLCs. Towards that end, the new regulations centralize the assessment and collection of tax directly at the entity level from the partnership or LLC. Traditionally, the IRS has audited and assessed tax on the partners or members rather than the entity itself.
Every partnership and LLC should amend their governing documents to:
Designate a "partnership representative" who will have the sole authority to make binding decisions in audit proceedings. IRS will designate a Partnership Representative if one is not appointed.
Authorize selections regarding complex set of elections under the new audit rules.
To assist partnerships and LLCs in navigating the new IRS rules and to help minimize any potential negative impact, McDonald Hopkins had created two new programs: the McDonald Hopkins Partnership and LLC Amendment Program, which is designed to prepare clients for the new rules by amending their governing documents, and the McDonald Hopkins Partnership Representative Specialist, a program that provides clients with a reliable option for their Partnership Representative.
In addition to the new services, McDonald Hopkins created a partnership audit services page on their website, which provides timely and informative content on the program, the implementation process and any subsequent updates.
About McDonald Hopkins Founded in 1930, McDonald Hopkins is a business advisory and advocacy law firm with locations in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach. With more than 50 service and industry teams, the firm has the expertise and knowledge to meet the growing number of legal and business challenges our clients face. For more information about McDonald Hopkins, visit mcdonaldhopkins.com.
CONTACT: Deborah W. Kelm McDonald Hopkins LLC 600 Superior Avenue, East, Suite 2100 Cleveland, Ohio 44114 Phone: 216.348.5733 Email: [email protected]