The 2015 Balanced Budget Act (BBA) instituted a new partnership audit regime under which, like the Tax Equity and Fiscal Responsibility Act (TEFRA) partnership audit regime, the IRS conducts audits of partnerships at the partnership level but, unlike the TEFRA audit regime, imposes liability on the partnership rather than directly on the partners. The BBA partnership audit regime applies to returns filed for tax years beginning on and after January 1, 2018. The IRS issued complex regulations under the BBA partnership regime. Last July, the Tax Court issued an opinion invalidating one of the regulations regarding the time for issuing a Notice of Final Partnership Adjustment (FPA) after a partnership makes a modification request. J. M. Assets v. Commissioner, 165 T.C. No. 1 (2025).
Robert S. Horwitz is a Principal at Hochman Salkin Toscher Perez P.C., former Chair of the Taxation Section, California Lawyers’ Association, a Fellow of the American College of Tax Counsel, a former Assistant United States Attorney and a former Trial Attorney, United States Department of Justice Tax Division. He represents clients throughout the United States and elsewhere involving federal and state administrative civil tax disputes and tax litigation as well as defending clients in criminal tax investigations and prosecutions. In 2022 the Tax Section of the California Lawyers Association awarded him the Joanne M. Garvey Award for lifetime achievement in and contributions to the field of tax law. Additional information is available at http://www.taxlitigator.com
For more information, please contact Robert S. Horwitz at horwitz@taxlitigator.com
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