CategoryTax Day

Now Is The Time To Review Your Tax Provisions

By:  Amanda Wilson

As tax season is underway, one important deadline is coming that should not be overlooked.  Tax law allows for partnership and LLC agreements to be amended retroactively to the first day of the prior year, provided the amendment is executed before the due date (without extensions) for the prior year’s tax return.

What does this mean for your agreements?  You should look at the tax provisions and see if there are any items that should be corrected.  For example, do the allocation provisions result in unintended consequences that you would like to correct?   Would you like to add a limited deficit restoration obligation so that one member or partner can utilize losses?   Or does your agreement provide for a tax matters partner, which is a concept that was replaced by a partnership representative (previously discussed here).  You should act quickly, though, as the deadline for executing any amendments for the 2018 tax year is March 15, 2019.

Six Things To Know About the New Pass Through Income Deduction

By:  Amanda Wilson

Do you have questions about the new deduction available for taxpayers that have income from a partnership, S corporation or sole proprietorship?  Here is an article I wrote answering six common questions that I get regarding this deduction.  The article can be found here.

IRS Re-Releases Partnership Audit Regulations

By:  Amanda Wilson

The IRS has released proposed regulations implementing the new centralized partnership audit rules.  These regulations are virtually identical to the regulations that were released and then pulled in January of this year.  A slide presentation that I previously posted discussing these regulations (as well as other developments) can be found here.

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