Partnership and LLC Taxation

TOPICS / PASSTHROUGHS

February 1, 2018

IRS reallocates losses of joint venture among foreign and domestic partners

A CCA memorandum addressed the allocation of partnership losses where certain partners had negative capital account balances.

January 2, 2018

Final rules govern election out of centralized partnership audits

The IRS finalized the rules for determining whether partnerships are eligible to elect out of the centralized audit procedures enacted in 2015, which apply to partnerships this year.

January 1, 2018

IRS holds investment transaction is sale of refined coal tax credits

Investors in a partnership were not entitled to deduct credits because the investment transaction was structured solely to facilitate the purchase of the credits.

January 1, 2018

Tax Court holds microcaptive insurance company was not a bona fide insurer

Tax Court held that amounts passthrough business entities paid to a purported insurance company they
owned were not premiums paid for insurance contracts and not deductible.

January 1, 2018

Proposed regulations would allow Sec. 754 election without partner’s signature

To ease the regulatory burden on partnerships, the IRS announced that it is eliminating the requirement that partnership elections under Sec. 754 be signed by a partner.

December 1, 2017

Developing a uniform state approach to the new federal partnership audit regime

This column, the first of two parts, discusses issues states must consider and steps some have taken to align partnership audit rules with new federal rules.

November 1, 2017

Tax Court denies ordinary abandonment losses in taxpayers’ disposition of partnership interests

Tax Court affirmed the IRS’s decision to recharacterize loss of a partnership disposition from ordinary to capital when the taxpayers failed to provide evidence of abandonment.

November 1, 2017

Charitable contribution substantiation procedures in statute not available in absence of regulations

A taxpayer’s substantiation requirements for a charitable contribution deduction were not met by information reported on the donee organization’s tax return.

October 11, 2017

IRS permits partnership basis election without partner’s signature

To ease the regulatory burden on partnerships, the IRS announced that it is eliminating the requirement that partnership elections under Sec. 754 be signed by a partner.

October 1, 2017

Dissolution of an LLC

Procedures for concluding the affairs of the LLC should be included in the operating agreement.

October 1, 2017

Practitioner’s incorrect change to passive status costly

A preparer’s improper change of status of income from active to passive is costly for taxpayers.

September 1, 2017

IRS reissues centralized partnership audit rules

The IRS reissued proposed regulations governing the centralized audit rules, which assess and collect tax at the partnership level.

September 1, 2017

Partner’s bonus was not a partnership distribution

A bonus payment to a hedge fund manager was payment for services outside her capacity as a partner.

September 1, 2017

How the death of a partner could affect a partnership’s year end

Partnerships must reevaluate their current fiscal year when a partner dies, since the estate may have a different year end than the individual partner.

July 1, 2017