- Law Firms Urging Clients to Prepare for New Federal Rules that Will Affect Partnership and LLCs
- September 15, 2017 | Author: Raquel (Rocky) A. Rodriguez
- Law Firm: McDonald Hopkins LLC - Miami Office
"New federal rules taking effect in 2018 that will affect
partnerships and limited liability companies have prompted law firms to alert
clients that they should review and amend their governing documents and
designate a partnership representative in case of an audit by the IRS.
At least one firm, McDonald Hopkins, has created an entire program to address the changes that partnerships and limited liability companies may need to make. These businesses must elect a "partnership representative" who will have sole decision-making power for the company and all shareholders in discussions with the IRS. Those decisions include whether the partnership or a particular partner will pay any underpayment in taxes the audit finds. Partnerships that don't designate a partnership representative will have one designated by the IRS."
Click here to read the entire article in the Daily Business Review.