Partnership Basis & Centralized Audit Regime
Air Date: July 26, 2021 8:00 AM to 9:40 AM PT
IRS Program #: X9QQU-T-00786-21-S
CE: 2
Speaker: Michael Miranda, CPA



COURSE DESCRIPTION
Beginning January 1, 2020, partnerships are required to report partners’ capital on Schedule K-1 on the tax basis method. Find out what is happening with the tax basis capital account reporting. We will examine the current state of this reporting issue, including the appropriate method per the IRS. Then we will provide an all-purpose overview of the New Partnership Audit Rules as developed by the Bipartisan Budget Act of 2015 (BBA). A quick summary of previous audit rules, reasons for the change, and why we should be concerned about these new rules. Terms associated with the new audit rules. Who can or cannot elect out; how to elect out; and the election required to elect out of the new partnership audit rules. Analysis on the importance of updating the partnership agreements in relation to these New Partnership Audit Rules, economic consequences to partners, and provide a detailed breakdown on the importance of the “New” Tax Matters Partner, which is now called the Partnership Representative “PR”. Other issues to be deliberated will include how to handle partners who have left the partnership, communications with the partners during proceedings with the IRS, role and power of the “PR”, and how will partnership pay for the tax from audit.

Learning Objectives
Upon completion of the session, the participant will be able to: 

• Understand the partnership tax basis capital reporting requirements 
• Understand the “tax basis method” and restating beginning tax capital 
• Understand the outstanding issues related to the partnership tax basis capital reporting 
• Provide attendees with a “brief” overview of New Partnership Audit Rules including the IRS roadmap and audit timeline 
• Discuss the importance of updating partnership agreements in relation with the new Partnership Tax Audit Rules 
• Importance of the “New” Tax Matters Partner, which is not called the Partnership Representative “PR

Continuing Education
This course qualifies for IRS Continuing Education Hours. NAEA reports IRS CE on a monthly basis. If you have not received your CE Hours in your IRS PTIN Account by the end of the month after receiving the certificate, please contact NAEA at education@naea.org.

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