See Better Investing, March 2018, page 18:  http://mydigimag.rrd.com/publication/?i=471507&p=&l=&m=&ver=&view=&pp=#{"issue_id":471507,"view":"articleBrowser","article_id":"2995326"}

The author, Russell Malley of iClub Central, does NOT mention any particular IRS Form to use.  If there is a special form, maybe a board reader or the author could provide it? 

He does say this rule is directed at partnerships of 100+ members, and that the rule does apply to smaller partnerships such as investment clubs too.

Richard Malley suggests that, this year, every single investment club review its partnership agreement or legal document to comply with these IRS guidelines for partnerships.  Clubs that have trusts as partners are discussed.

Joe, you are basically correct when you say that no matter when the accounting error occurred, the partners at the time of the audit are responsible for any penalties incurred. 

Purpose of this change:  this new IRS instruction is to clear up an old ambiguous guideline that was unclear as to whether current partners, or partners at the time of the error, are liable.  The problem with finding the partners at the time of the error is difficult – people moved, can’t be found, deceased, estates settled, etc.  This new instruction clarifies exactly which partners are liable.

Helen Albanese, Life Member

CSI Investment Club – a virtual club

-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Clarence Joseph Farrell via bivio.com
Sent: Friday, February 16, 2018 3:23 PM
To: club_cafe@bivio.com
Subject: [club_cafe] New IRS Form of investing partnerships

I remember reading an article about changes in the tax code that could potentially effect clubs in the future.

Something about if the IRS finds problems in an audit, whoever happen to be the current partners may be liable for taxes and penalties even if they were not a partner in the time period of the problem and those that had withdrawn would be off the hook.

There was a new form to be filed by each club to inform the IRS who to talk with about such issues.  I do not remember the form number and cannot find the article.

At your convenience, could you help me with that info please.

Joe Farrell

Everyday Investment Club