State and Local Tax (SALT) partner Bruce Ely was quoted in Bloomberg BNA Daily State Tax Report regarding the recently passed Bipartisan Budget Act of 2015 raising sweeping implications at the state level. Effective for returns filed for partnership taxable years beginning after Dec. 31, 2017, the act provides that adjustments resulting from Internal Revenue Service (IRS) audits of partnerships will be assessed and collected at the partnership level. The IRS has indicated it intends to issue guidance on the act and may seek technical corrections legislation from Congress.
"We need to take a hard look at almost every partnership agreement and operating agreement our firm has drafted over the years, and pretty soon, especially if the IRS issues guidance next year and partnerships start opting in early," said Ely. "And there are so many changes from this Act that will have to be reflected in most partnership agreements. It's not going to be a one-page addendum."
Read the complete article, “Passthrough Entities: Bipartisan Budget Act Raises Big Questions for State Regimes,” which first appeared in Bloomberg BNA Daily State Tax Report on November 23, 2015. (Login Required)