ncCPAp on the GO!

New Partnership Audit Procedures for assessment

  • 1.  New Partnership Audit Procedures for assessment

    Posted 02-22-2019 06:35


    i would like to invite comments, and i post with the knowledge that i may not be entirely correct.

    If a partnership can not, or does not elect out , the general rule is that that the partnership will bear the burden of an audit.audit.
    This has the effect of causing current partners to pay for prior year's audit as a general rule..

    Alternatively

    1)    a partnership has 45 days after being notified of the audit change to elect to amend k-1s to its partners. The partners then pick up the change. and amend their return for the review year -  the push out method

    2)    The partnership can pass out to a prior partner " a review year partner"  their share the balance due assess to the partnership.  Their by no amended return for that partner, they just pay money. "the pull in method"

    If i am correct, can a partnership specifically allocate a partial amount of the assessment to " prior partners" and then pay the difference.Thereby dividing the burden between current partners and prior partners.

    Any comments more than appreciated.



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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Melville NY
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