BPM Real Estate Insights
9
Did You Know?
The Bipartisan Budget Act of 2015 included major changes to the partnership tax audit process which provided that the
IRS will audit and collect tax from partnerships at the entity level. The new rules are effective for tax years beginning
in 2018 and are applicable to all entities treated as partnerships for federal income tax purposes, including limited
liability companies that have not elected to be treated as corporations. Private equity funds, hedge funds, MLPs and
other partnerships, as well as their investors, will be significantly impacted by the new audit rules and should carefully
consider making changes to their governing documents.
Details to come in the next edition of BPM Real Estate Insights.