10 Jan 2023
Coming Soon: IRS Audits of Complex Partnerships
With an $80 billion increase in funding for IRS enforcement, IRS is expected to expand its existing programs that examine large, complex partnerships, focusing on issues such as partnership transactions, partners' tax basis, and limited partners' self-employment tax exceptions. Learn more about the operation by reading this article by Skadden Arps attorneys.
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- Advanced Taxation Issues for Partnerships and LLCs
Learn more about the unique features of partnerships including advanced issues in partnership taxation, like the ability to allocate items of income, gain, loss, deduction, and credit; partnership distributions and liabilities; and I.R.C. § 754 elections, partnership terminations, and liquidations.
- Partnerships and LLCs: Reporting and Procedural Requirements
Discover the major reporting and procedural requirements for partnership and limited liability company (LLC) entities. Even though partnerships and LLCs are flow-through entities that the IRS does not tax directly, most of these entities must file yearly informational returns that report the partnership’s or LLC’s items of income, gain, loss, deduction, and credit. The partnership must also report these items to its partners so that they can file their own federal income tax returns correctly.
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- Tax Key Legal Developments Tracker (Federal)
Stay informed on new developments:- Excise Taxes and Credits. IRS issues interim guidance on the Inflation Reduction Act’s changes to the tax credit for energy-efficient home improvements under I.R.C. § 25C and the tax credit for residential energy property under IRC § 25D in the form of frequently asked questions. IRS FAQs.
- Employee Benefits/Payroll/Reporting. IRS delays for one year implementation of R.C. § 6050W(e), a law requiring third-party settlement organizations (TPSOs), like Venmo and PayPal, to report aggregate payments of $600 or more, treating 2022 as a transition year to implement a provision that lowered Form 1099-K reporting on TPSOs from $20,000 (with 200 or more aggregate transactions) to $600. See I.R.S. Notice 2023-10. I.R.C. § 6050W was added to the Code as part of the Housing & Economic Recovery Act of 2008 with the purpose of improving voluntary tax compliance by businesses accepting payment by payment cards. I.R.S. Notice 2011-42. The American Rescue Plan Act of 2021 modified the I.R.C. § 6050W reporting requirement by lowering the reporting threshold.
- Employee Benefits/Payroll/Reporting. IRS announces an increase in the business standard mileage rate for 2023, to 65.5 cents/per mile, up 3 cents from the 2022 midyear adjustment of 62.5 cents. I.R.S. Notice 2023-03.
- Explore local taxes in key jurisdictions (CA, CT, DE, DC, FL, GA, HI, IL, IN, ME, NJ, NC, OH, PA, SC, and WA) with our State Law Comparison Tool (Practice Area: Tax, Topic: Local Taxes).
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