Effective as of January 1, 2018, certain rules governing federal income tax audits of partnerships have changed substantially as a result of the passage of the Bipartisan Budget Act of 2015 (the “Act”). These changes require taxpayers who conduct business as a partnership or other entity treated as a partnership for tax purposes (such as a limited liability company with multiple owners) to amend their partnership agreements (if you conduct business as a partnership) or operating agreements (if you conduct business as a limited liability company) to address issues raised by the new rules.
What To Know About New Tax Law
The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017 and drastically changed certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”). The impact of the changes touches practically all businesses and individuals in one way or another. Among other things, the Act permanently decreases the corporate tax rate, temporarily decreases individual income tax rates, limits or eliminates the ability of taxpayers to utilize certain deductions and/or tax credits, includes special provisions allowing certain owners of qualifying “pass-through” businesses and disregarded entities to deduct up to twenty percent (20%) of qualifying business income, and modifies a number of other provisions that will impact businesses and owners going forward. This article briefly summarizes certain provisions of the Act that may be of particular interest to our business clients.