Join Now, Pay No Initial Fee

For a limited time only, when you sign an annual contract for Wealth Docx, Business Docx, or Wealth Tracx, we will waive your initial fee.

Business Law

read
Business Law

TEFRA Repeal: Essential Changes to Partnership Agreements and Operating Agreements

by Jeramie Fortenberry, JD, LL.M. (Taxation) | Executive Editor, WealthCounsel

The Bipartisan Budget Act of 2015 (P.L. 114-74), signed into law on November 2, 2015, effectively repealed the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). This move significantly revamps how the Internal Revenue Service (IRS) will audit and collect taxes from partnerships. Analysis of this legislation reveals that it has the potential to affect the majority of small businesses — certainly any with partnership and operating agreements drafted prior to enactment of the Act. It is imperative for attorneys to understand and prepare themselves — and their clients — for these significant changes.

How should you respond to the TEFRA repeal? To prepare your clients and their documents for these changes, please download this Thought Paper. You'll learn about the following:

  • The shift of audit adjustments responsibility from the partners to the partnership itself;
  • The elimination of the "tax matters partner" role;
  • The change to when tax liability is applied; and
  • Drafting points on how partnership and operating agreements can be revised to minimize the financial and procedural burden on the partnership


Complete the form to get your free guide

Related Resources

IB Startup Smart thumbnail
read
Business Law

Get Startup Smart: Choosing the Right Entity for a New Business

Choice of entity is fundamental to business planning. Help your small business clients make the right choice by evaluating these key factors.

Learn More
IB Asset Protection Case Studies Pt 3 thumbnail
read
Trusts & Estates

Case Studies in Asset Protection, Part 3: High Risk Assets

Download this article to learn more about LLC entity planning to mitigate risk for certain client assets.

Learn More
Deadlocks in O As thumbnail
read
Business Law

Avoiding Deadlocks In LLC Operating Agreements

Learn 4 types of key provisions to help your clients avoid deadlocks in two-member LLCs

Learn More

Get the Premier Magazine for Industry Thought Leaders