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“Pitfalls under the centralized partnership audit regime,” Accounting Today

August 26, 2024

Jasen Hanson Published in Accounting Today

In an article published in Accounting Today on August 22, 2024, Atlanta-based Shareholder Jasen Hanson discussed the difficulties for partnerships and partnership representatives under the Bipartisan Budget Act.

Hanson gives an overview of the IRS examination process, he explains, “BBA examinations begin with a Notice of Administrative Proceeding, which is sent only to the partnership representative, who is appointed by the partnership on a timely filed original return for each tax year and charged with the responsibility of representing the partnership in matters involving the Internal Revenue Service.”

Hanson also elaborated on five specific pitfalls from the Centralized Partnership Audit Regime. “The individual allocations and additional interest could cause inconsistent results among partners. Unlike modifications, push-outs affect every partner. Situations may arise where a push-out helps a partner with a lower effective tax rate but increases out-of-pocket costs for a partner at a 37% effective rate that now has to contend with 2% additional interest,” he wrote.

 To review the full article, you may click here.