Partnership agreement
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Partnership agreement I am looking for the information or email where the recommended wording for amending the partnership agreement to either opt out of the irs audits or what ever my club decides to do tomorrow. I am not finding what i need. colleen goings Colleen,
Here is what we did with both of my clubs. It is a combination of what bivio and IClub recommended.
"Designation and Election Under 26 US Code Sections
6221-6223. The Partnership's Treasurer shall be the designated Partnership
Representative (PR) for purposes of 26 USC Section 6223 and shall responsible
for dealing with the IRS in the event of an audit. Unless otherwise directed by
the Partners, the PR shall annually, in connection with filing the
Partnership's IRS Form 1065 tax return, indicate the Partnership elects to be
treated under 26 USC subsection 6221(b)(1)(a), that is, an election out of the
audit rules of 26 USC Section 6221. The Treasurer shall include with such
election any required information to make such election effective. In the event
of an IRS audit, the PR will represent the Partnership but is not authorized to
make any settlement agreement without the three-quarters majority consent of
the current Partners. Partners shall consist only of individuals; no trust or
partnership may be a Partner."
Ye ole bud,....Larry
Larry Reno -----Original Message-----
From: Colleen Goings via bivio.com <user*15498700001@bivio.com> To: club_cafe <club_cafe@bivio.com> Sent: Sun, Nov 18, 2018 10:46 pm Subject: [club_cafe] Partnership agreement I am looking for the information or email where the recommended wording for amending the partnership agreement to either opt out of the irs audits or what ever my club decides to do tomorrow. I am not finding what i need. colleen goings See https://www.bivio.com/club_cafe/mail-thread?p=261340100003 Bob > On Nov 18, 2018, at 10:45 PM, Colleen Goings via bivio.com <user*15498700001@bivio.com> wrote: > > I am looking for the information or email where the > recommended wording for amending the partnership agreement > to either opt out of the irs audits or what ever my club > decides to do tomorrow. I am not finding what i need. > > colleen goings
See Larry, I think you did a great job. I'm coming late to the party re: the IRS change to the partnership audit rules. I've read all of the posts, especially Laurie's 11/19/2018 and Larry's 11/18/2018. Please correct me if I'm wrong but these posts seem to address 2 separate issues -- 1) the revised partnership agreement language to reflect the "opt out" provisions of the new partnership audit rules and 2) the "opt out" election language to be used on a club's partnership tax return. The sample partnership agreement on bivio incorporates language to reflect the new "opt out" provisions. However, is sample "opt out" election language for use on the partnership tax return available? Its my understanding that the "opt out" election is made annually and must be filed as part of the partnership tax return. If all one does is revise the partnership agreement, an "opt-out" election for tax purposes has not been made. |
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