Under the link below is a useful new post about the new Treasury Department temporary regulations under the new Bipartisan Budget Act of 2015 partnership audit rules.
As many of you will know, Congress in November 2015, enacted, in the Bipartisan Budget Act of 2015, major and draconian new partnership audit rules. Congress painted with a broad and messy brush, and there are dozens of issues as to the meaning and implementation of these rules. All of these issues must be resolved, if at all, by Treasury regulations. Yesterday, the IRS announced that Treasury is aiming to issue these regulations by the end of this calendar year.
Over time, one or more of our LLC clients may go bankrupt. If they do, can a bank provide in the LLC’s operating agreement that the LLC may not file for bankruptcy except with the bank’s consent? According to the very recent decision of the Delaware bankruptcy court, discussed in the post under the link below, the answer is no.
Profits interests can be a highly useful way of attracting and reward LLC employees, independent contractors and investors, but they can involve federal tax pitfalls. The post under the link below summarizes new IRS regs that address whether “employees” of multi-member LLCs taxable as partnerships will be treated for federal tax purposes as partners if the LLC grants them profits interests.
The new Bipartisan Budget Act partnership audit rules are a major development in LLC tax and will affect every existing and new partnership agreement for general and limited partnerships and operating agreement for multi-member LLCs taxable as partnerships. The Treasury Department has just issued a new temporary reg and a proposed reg re early elections under these regs. See T.D. 97800 and REG-105005-16. Every LLC lawyer should have at least a basic understanding of these regulations.
Every LLC lawyer should have, at the very least, a solid basic understanding of the TEFRA partnership audit rules, which will apply until the end of 2017; the new Bipartisan Budget Act rules, which will apply thereafter; and how to deal with these rules in the operating agreements of multi-member LLCs taxable as partnerships. Below is a link to a very practical new blog post by Lou Vlahos about the new regs.
I’ve just stumbled across the blog post under the link below. The post was published in September 2015. I have not posted about this post previously, and I generally post only about current developments. However, I’m covering it in this post because it’s significant for at least a significant number of LLCs. It addresses the issue of who, for federal tax purposes, may sign the federal tax return of an LLC managed by another LLC.
For those of you who follow New Hampshire taxation, the New Hampshire Department of Revenue Administration document under the following link will provide a useful summary of NH 2016 tax changes:
Here, under the link below, is another recent blog post about the new Treasury temporary regulations governing partnership opt-ins to the new Bipartisan Budget Act partnership audit rules.
For readers of my posts who are interested in New Hampshire state tax, here are recent New Hampshire tax developments.