Dr. Friday highlights expanded IRS partnership audit enforcement under the Bipartisan Budget Act framework. She stresses clean records for basis, allocations, and distributions to protect partners.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
And this is really for people that are in partnerships, which would also be LLCs.
The IRS is expanding its partnership audit regime against the Bipartisan Budget Act framework, which allows adjustments to be assessed at the partnership level rather than partner level.
That means the partnership can actually end up with the partner being in trouble, so you need to make sure proper documentation is in place.
The partnership must maintain clear records supporting basis calculations, income allocations, and distributions. These are important words, and you need to make sure your tax person and accountant are doing them. You need help? drfriday.com.
You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.