Why Choose A Professional Partnership Representative?
The major underlying policy reason behind enacting the Bipartisan Budget Act, or BBA, was to increase the audit rate of partnerships. A partnership representative’s only role is to represent the partnership in the event of an IRS examination. Why not choose a professional who excels in representing taxpayers in IRS examinations?
At US Partnership Representative, Inc., we offer partnership representative services from experienced tax advocates. We have a proven track record of protecting the interests of our clients and resolving tax disputes through the law firm Moore Tax Law Group, LLC.
Not every partnership needs or would benefit from a professional partnership representative. When determining what the right option is for your partnership, here are some important factors to consider.
Do you have at least one partner who has a “substantial presence” in the United States? For purposes of partnership representatives, “substantial presence” requires the partnership representative to have a United States taxpayer identification number, a telephone number with a United States area code, a United States street address, and the ability to make themselves available to meet with the IRS in person in the United States at a reasonable time and place as determined by the IRS.
If your partnership has no partners with “substantial presence” in the United States, you must designate a professional partnership representative or some other nonpartner who has a substantial presence to be the partnership representative. The team at US Partnership Representative, Inc., has the extensive tax advocacy experience to be that representative for your partnership.
Experience Dealing With The IRS
Do you have at least one partner with a substantial presence in the United States who also has experience handling an IRS audit?
While there is no rule that a partnership representative must know how to handle an IRS audit, it makes good sense to have one who does. The stakes are high, and there are many traps for the unwary. Having a partnership representative who knows how to handle an onboard IRS audit from the start may provide a significant benefit to the partnership.
Is there a possibility that the make-up of the partnership may change over the years such that the partners in the partnership in 2018 may be different from the partners in the partnership in the future? Because the partnership representative designation cannot be changed absent an IRS audit or an administrative adjustment request, a professional partnership representative will provide continuity and certainty that the designated partnership representative will stand ready to handle an IRS audit regardless of changes in the partnership.