Mary McNulty Quoted in Tax Notes Today on Partnership Audit Changes

“POTENTIAL PARTNERSHIP AUDIT CHANGES IN THE BUDGET ACT” ; October 28, 2015

A partnership proposal in the budget bill released October 27 would create a single, streamlined set of partnership audit rules, repealing the rules from the 1982 Tax Equity and Fiscal Responsibility Act and electing large partnership (ELP) rules.

The Obama administration included new simplified partnership procedures in its 2015 revenue proposals. “The common theme among these proposals, and reflected in the Budget Act, is a shift in the payment of tax from those persons who were partners for the year under audit and received the tax benefit from the tax item at issue, to the partnership and its current partners,” said Mary A. McNulty of Thompson & Knight LLP.