In an article published by Bloomberg BNA, shareholder Jerry August discussed the final regulations for partnership audits released by the IRS.
The IRS also permitted partnerships to serve as their own representatives and denied the representative the power to choose a successor, should the person resign. Those checks on the authority of the representative are “very important, especially if there are bad acts being committed by the partnership representative,” said August. If the representative “is a non-partner, they may not have a fiduciary duty to the partners.”
The article is available through a Bloomberg Daily Tax Realtime subscription.