Description

The centralized partnership audit regime (CPAR) changes the way the IRS conducts partnership audits for tax years beginning after December 31, 2017. The AICPA’s Jonathan Horn joins host Damien Martin to share what we know (and don’t know) about this significant change and explain how it will impact partners and partnerships.

TIME STAMPS OF WHAT’S COVERED

• [0:21] What were the TFRA rules?
• [2:12] How did we get CPAR?
• [4:45] What changed under CPAR?
• [6:48] What’s a partnership representative?
• [8:32] Who should and shouldn’t be a partnership representative?
• [13:42] What are the requirements to elect out?
• [15:08] How do you count S corporation shareholders for purposes of the election out of CPAR, and why is it important?
• [17:15] Why is there a need to amend partnership agreements?
• [19:29] What’s the status of guidance on CPAR?
• [23:43] What are the key areas the AICPA is requesting guidance on?
• [32:18] Will we see a delay in CPAR?
• [35:28] What should partners, partnerships and tax practitioners be doing now?
• [37:51] Why isn’t CPAR being discussed very much right now, despite its significance?
• [38:21] How does CPAR affect states?
• [41:16] What’s Jonathan’s key takeaway on CPAR?

BIO FOR GUEST

Jonathan Horn is a senior manager on the AICPA’s Tax Policy & Advocacy Team, based in Washington, D.C. He is responsible for the development and submission of comments to Congress, Treasury and the IRS and developing alerts for members. Prior to joining the AICPA, he was a sole practitioner for over 20 years, providing tax services to clients of all sizes from around the globe. In 2015, Jonathan received the AICPA Tax Division Distinguished Service Award for his extraordinary contributions to the work of the AICPA Tax Division.

Connect with Jonathan on LinkedIn

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ADDITIONAL RESOURCES

AICPA Resource Center: Partnership Audit & Adjustment Rules

AICPA comment letter dated May 16, 2018: Proposed Regulations Regarding the Centralized Partnership Audit Regime: Adjusting Tax Attributes

BKD Thoughtware article: IRS Partnership Audits Will Likely Increase Under New Rules

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