Understanding Partnership Administrative Adjustment Requests
By Ugo Onwudiegwu , CPA Senior Tax Manager Doeren Mayhew
The Bipartisan Budget Act ( BBA ) of 2015 replaced the auditing and tax collection procedures for partnerships under the Tax Equity and Fiscal Responsibility Act of 1982 and the electing large partnership rules , and introduced a new centralized partnership audit regime ( CPAR ). Under the BBA procedures , partners can no longer amend their Form 1065 or Schedule K-1 , and instead , must file an administrative adjustment request ( AAR ), unless the entity has elected out of CPAR .
Due to the complexity of AARs , here are some FAQs to keep in mind .
10 VIEWpoint Issue 2 | 2022