Thursday, January 10, 2019
1:00pm-2:30pm EST, 10:00am-11:30am PST
Early Registration Discount Deadline, Friday, December 14, 2018
A live 90-minute CLE webinar with interactive Q&A
For partnerships, including LLCs taxed as partnerships, the new audit rules are a game-changer. Enacted under the Bipartisan Budget Act of 2015, the rules impact most partnerships, regardless of size, since Jan. 1, 2018. Under the new regulations, the IRS will assess and collect taxes at the partnership level as opposed to the individual partner level. Any adjustments to the partnership’s income, gains, losses or deductions will be assessed in the year in which a tax audit occurs.
For private equity and hedge funds, in which ownership changes may occur due to redemptions, investor defaults or other events, the assessment of a partnership-level tax in the year in which an audit concludes may cause current partners to be subject to tax liability for periods they may not have been partners or held a different ownership percentage.
PE funds can make a “push-out” election within 45 days of a final adjustment but may also need to amend their partnership agreements to address these contingencies.
Going forward, PE funds must select a partnership representative with broad authority to bind the partnership and its partners to agreements with the IRS. Partners will no longer have the right to participate in a partnership audit. LLC agreements must clearly define the responsibilities of, and indemnities available to, this representative.
Our panel will examine the new IRS partnership audit rules and their impact on private equity and investment funds. The panel will discuss the changes that should be made now in partnership and LLC agreements in contemplation of the new rules, the elections available to smaller partnerships to avoid the new partnership level audits, and “push-out” elections which will allow for adjustments for changes in ownership.
The seminar will review these and other key issues:
- What options are available to smaller partnerships and LLCs that wish to opt out of the partnership-level taxation requirement?
- How should private equity funds address tax inequities resulting from changes in ownership from one year to the next?
- What amendments should be made to include a “partnership representative” in existing partnership or LLC documents?
After the presentations, they will engage in a live question and answer session with participants so they can answer your questions about these important issues directly.
Or call 1-800-926-7926
Ask for New IRS Partnership Audit Rules: Private Equity on 1/10/2019
Mention code: UL1P12-G2OJAP