Counsel Andy Weiner wrote an article for the Journal of Tax Practice and Procedure, co-authored with Miri Forster of EisnerAmpner, titled “Buckle Up: Navigating the Long Road of the BBA Partnership Audit”.
The article provides a primer on partnership audits under the Bipartisan Budget Act of 2015 (BBA), which introduced complex and consequential rules that govern the process. Andy and Miri write, “Our goal is to acclimate partnerships and their partners, and tax practitioners, with the BBA partnership audit procedures and help them with the directions available during the BBA audit process.”
In the article, Andy and Miri describe the logic and priorities behind BBA partnership procedures and provide in-depth summaries of every step of the process so that practitioners understand what to expect under the BBA audit regime and what the options are. As they detail, there are opportunities for partnerships to self-correct, minimize tax liability imposed at the partnership level, and shift tax liability to the partners, but “partnerships need to think ahead and navigate a difficult path within prescribed timeframes to achieve what the partnership determines is the optimal tax result.”
Andy and Miri stress the importance of planning and communication by practitioners with their partnership clients as well as with the IRS. “[T]he BBA audit follows a long and winding road and may take years to complete. Regular communication between IRS examiners and taxpayers and patience are essential to stay on track and move forward efficiently and effectively,” they write.
The full article can be read here.
About Andy Weiner
Andy focuses his practice on tax controversies, both civil and criminal, at all stages of the administrative and judicial process. A former U.S. Department of Justice attorney, he has argued approximately 50 tax cases in the U.S. courts of appeals. He is a Forbes contributing columnist on tax controversy and tax policy and a frequent writer and speaker on tax issues. He is a fellow of the American College of Tax Counsel.
