Mary McNulty Quoted in Law360 on Partnership Agreement Audits

“Audit Overhaul Warrants Revision Of Partnership Agreements”

An audit and tax collection overhaul for partnerships including hedge funds and private equity firms, which was signed into law by President Barack Obama this week, should prompt changes to nearly every U.S. partnership agreement, experts say.

Mary A. McNulty, a partner with Thompson & Knight LLP, said the new regime may also be favorable to partnerships because the statute of limitations that will apply to assessments of tax will look to when the partnership’s tax return was filed rather than the statute of limitations that applies to individual partners. Partnerships will want to keep that in mind when deciding whether to make the election to opt out, she said.