While many of us were preoccupied with the sweeping “Tax Cuts and Jobs Act” passed into law in December 2017, a less publicized change in tax law went into effect on January 1, 2018. For those family-owned business that operate as limited liability companies or partnerships, this is important news for you. The IRS is substantially changing the rules on audits for these kinds of entities, including who pays the bill for any tax deficiency.

 

To those businesses formed as LLC or partnerships, please read the advisory titled, Sweeping Changes to Partnership Audit Rules Warrant Changes to Existing Partnership and LLC Agreements, prepared by our tax partner, Jim Wreggelsworth, and work with your legal and tax advisors to ensure your governing documents are properly updated.