If your business files a Partnership Form 1065 return or you have an interest in a partnership, you need to be aware of changes in the IRS audit rules which will have a significant impact on partnerships. These changes also affect LLCs filing partnership returns.
Some small partnerships/LLCs may be able to elect out of the new rules. The election requires the partnership/LLC to have no more than 100 partners/members. The owners must generally be: Individuals, C or S corporations, or the Estate of a deceased partner/member. It is unclear whether a Single-Member LLC is a qualified owner. An annual election is required for this option in addition to other disclosure requirements.Read More