The new centralized IRS partnership audit regime

Learn about the new centralized IRS partnership audit regime and how it may affect taxpayers conducting business through partnerships.

Miri Forster

Miri Forster

Principal, Tax Controversy Services, KPMG (US)

+1 973-315-2631
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Effective tax years beginning January 1, 2018, a new centralized IRS partnership audit regime will transform partnership audits and the assessment and collection of tax, affecting all taxpayers that conduct business through partnerships now and in the future.

Sectors potentially impacted by the new regime:



Insights from KPMG

IRS Memo Suggests Expanded Role For Appeals Within the Partnership Audit Procedures

Greg Armstrong of KPMG LLP discusses recent IRS guidance that indicates the IRS Office of Appeals will play a larger role in the new partnership audit procedures under the Bipartisan Budget Act of 2015. The author concludes that although further guidance is needed, the memorandum is an important first step.

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Privately Speaking: The Impact of the New Partnership Audit Regime on Privately Held Companies

Read KPMG's recent issue of our bi-monthly Privately Speaking newsletter, where we highlight the new proposed regulations and its significance to privately held companies.

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Webcast Replay: The New Centralized IRS Partnership Audit Regime: Moving Forward Now…

In this Webcast replay, senior-level professionals from KPMG's Washington National Tax group and Tax Dispute Resolution Network present a review of the new regime, including:

  • An overview of the new partnership audit rules
  • The recently proposed regulations, including highlights of the important points
  • What taxpayers should be doing now to be prepared

(Original airdate: August 22, 2017)

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The New Partnership Audit Rules: An Executive Summary

Congress enacted the Bipartisan Budget Act of 2015 (the “Act”), which included major changes in the way the IRS will audit entities that are classified as partnerships for federal income tax purposes. As discussed in this What’s News in Tax article, taxpayers need to understand and consider the new rules today.

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Defining Issues 17-27 Recent IRS audit rules may affect how partnerships account for tax underpayments

KPMG reports on what changes partnerships may need to make to their financial reporting beginning in 2018.