I'm feeling singled out by this article...I'm a member of a
small investment club with 12 members (for which I'm the
designated tax matters partner), my husband and I have a
family revocable living trust--sounding as though IF my
husband and I were audited by the IRS,it would implicate the
club and other individual members to file an amended
personal returns next year. Does this mean that the club
should ask how many members likewise have trusts, definitely
get a partnership representative--with what qualifications--
consider disbanding the club in 2018. And should I withdraw
from the club this year? With questions, mjkh

Please include a link to the original article.
Charles

Charles it was discussed earlier in February in this forum
"New IRS Form of investing partnerships"
the article mentioned was in the march BI Magazine. "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"}"

I believe you have to be a BI Member to access it online.

Do you have a way to share the article for those without BI access?
scott


On Sun, Mar 4, 2018 at 11:55 AM, Leonard E. Douglass via bivio.com
<user*20291800001@bivio.com> wrote:
> Charles it was discussed earlier in February in this forum
> "New IRS Form of investing partnerships"
> the article mentioned was in the march BI Magazine. "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"}"
>
> I believe you have to be a BI Member to access it online.

Len,
Thank you for the reference to p.18 of the March issue of
Better Investing Magazine. Unfortunately the online link
would not accept my BI credentials. I was able to reference
the article in the paper magazine.
Charles

Based on Scott's request I reached out to BetterInvesting
for help because the magazine is copyrighted. The result is
BI has made the article available on their Blog which anyone
can access at the following URL [address].
http://blog.betterinvesting.org/investment-clubs/how-new-partnership-audit-rules-impact-your-club/

Addressing Marcia's concerns.

I don' read the article as saying the investment club would
be impacted by an audit of a member's 1040. The provisions
apply when the club's own 1065 is audited.

For clubs with members using a personal revocable trust, the
advice about amending the partnership agreement to specify a
process to choose a tax representative and fix that person's
authority to settle makes sense. In addition, I would add a
provision that partners agree to reimburse the partnership a
pro-rata share of the tax liability paid by the partnership
based on their percentage ownership at the end of the tax
year in question. Have it would apply even to partners who
withdrew in the interim.

Basically, if you follow the steps outlined by bivio in
preparing the 1065 return, there should be no fear of an
audit.

Jack Ranby, Treasurer
Grants Partners Investment Club

If you are a masochist and really want to deep dive the
subject here is a link to IRS Bulletin 27-28 which
discusses the new regulations in excruciating detail. "This
document contains proposed regulations to amend the
Procedure and Administration Regulations (26 CFR Part 301)
under Subpart - Tax Treatment of Partnership Items to
implement the centralized partnership audit regime enacted
by section 1101 of the BBA, Pub. L. No. 114-74."
https://www.irs.gov/irb/2017-28_IRB

Hint use your browsers find function to search for
"Election out of the centralized partnership audit regime"