Limitations period lost if not asserted at partnership level
Article Abstract:
The Tax Court prevented defendants in the Chimblo case from raising an expired limitations period in challenging the IRS' computational adjustments because the limitations period defense had to be raised at a partnership-level proceeding. The court gave a stipulated decision that none of the losses or credits claimed by the defendants in the partnership they started would be allowed. As a result, the IRS did not allow the partnership loss and credit pass throughs that the defendants have claimed. Sections 6221 through 6234 of the tax code stipulates that partnership taxation be treated centrally to ensure fair treatment of all partners. These regulations were enacted as part of the Tax Equity and Fiscal Responsibility Act of 1982.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Election eases audit adjustment chore for large partnerships
Article Abstract:
The Taxpayer Relief Act of 1997 has streamlined audit procedures for eligible large partnerships that have opted to use the simplified flow-through reporting system under Secs 771 through 777. This election can be made by partnerships with at least 100 partners during the previous tax year. However, such an option is not available to partnerships where substantially all of the partners perform a significant amount of services for the partnership or if buying and selling of commodities is the partnership's main business. Electing simplified reporting makes it easier for qualified partnerships to report items individually account for on the Schedule K of the Form 1065 and flow through to the partnership on Schedule K-1.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Tackle tandem partnership tax and bankruptcy issues
Article Abstract:
The author discusses strategies for maximizing tax benefits for bankrupt partnerships when they file for bankruptcy.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 2000
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