Posted by Lee Meyercord and Mary McNulty Lee Meyercord was on several panels last week regarding the new partnership audit rules at the Federal Tax Workshop in Dallas. The panels discussed calculating and modifying the imputed underpayment, the push-out election (including the proposed regulations issued last December that allow the push-out election through tiers), and various other procedural issues.A Tax Notes Today article (subscription required) on the Federal Tax Workshop quoted Meyercord about the ambiguity regarding whether a partner that owns its partnership interest through a disregarded entity could file an amended return to modify the imputed underpayment. The proposed regulations allow indirect partners to file amended returns to modify the imputed underpayment. However, Meyercord observed that a partner that holds its interest through a disregarded entity does not qualify as an indirect partner because an indirect partner is defined as a partner that holds its interest through a pass-through partnership, and disregarded entities are specifically excluded from the definition of a pass-through partner.The December proposed regulations on the push-out election treat a partner that owns its partnership interest through a disregarded entity as if the owner of the disregarded entity was the reviewed-year partner. The final regulations could add a similar clarification for purposes of the amended return rules to make clear that partners that own their partnership interest through a disregarded entity may file amended returns to modify the imputed underpayment.The December proposed regulations are available here and the proposed regulations released last June are available here and discussed in a prior post available here. If you have any questions about the proposed regulations or partnership audits, please contact one of us or any of the other Tax lawyers at Thompson & Knight.