The IRS’s new Centralized Partnership Audit Regime shifts much of the audit burden onto partnerships themselves. Colin Walsh, partner at Baker Tilly, explains that the rules introduce new adjustment options, heighten potential costs, and complicate filing decisions. He offers broad strategies for navigating the change and emphasizes the need for an engaged partnership representative as the guidance and enforcement landscape keeps evolving.
Learning Objectives
• Identify the core shifts CPAR makes to partnership audit liability and administration, including the concept of the imputed underpayment.
• Recognize scenarios where negative or positive adjustments
• handled through push
• out, modification, or AAR
• affect partners
• tax obligations.
• Distinguish among push
• out statements, imputed
• underpayment modifications, and AAR filings when choosing a compliance approach.
• Select effective strategies for appointing and empowering a partnership representative to manage CPAR examinations and subsequent IRS interactions.
Major Topics
• IRS compliance guidelines
• automation for accountants
• federal tax updates
• artificial intelligence in accounting
• internal controls
• audit report writing
• tax planning strategies
