Lance Drury Law
Ste. Genevieve 573-883-3056
Columbia 573-886-8900
St. Louis 314-200-0003

Failing to disclose partnerships could be very impactful under new audit regime

When a person is engaged in a business endeavor, one thing that can prove to be very important is what disclosures they make to the Internal Revenue Service. Inadvertently failing to disclose certain things to the IRS could expose a business owner to some very unpleasant surprises indeed. An upcoming change in IRS rules and practices is expected to add some big consequences to one particular type of missed disclosure: failing to disclose a partnership.

A new audit regime is being put in place regarding partnerships. The new regime is expected to come into effect at the start of next year. Purportedly, once this new regime takes effect, a person could trigger significant tax liabilities if they fail to disclose that a business endeavor of theirs is a partnership.

Whether or not a given business endeavor is a partnership isn’t necessarily an obvious thing. So, it is possible for a person to be in a partnership without realizing it. With the new consequences the new regime could usher in for failing to disclose a partnership, taking steps to have an accurate and clear idea of whether they are or are not in a partnership could take on a whole new level of importance for business owners in the future.

One wonders how common accidental triggering of tax liabilities through a failure to disclose a partnership will be once the new regime takes effect.

When failing to disclose certain information to the IRS triggers an unpleasant surprise, like tax liabilities, for a business owner, how the owner responds can have significant ramifications. Mishandling the matter could lead to even further unpleasant surprises. Among the things that could lead to such mistakes is a business owner not having the right information on their options and rights when dealing with the IRS in relation to the matter. So, quality legal guidance from a tax attorney is something it can be critical for a business owner to have when facing tax consequences in relation to an inadvertent failure to disclose.

Source: Bloomberg BNA, “Beware of Accidental Partnerships Under New Audit Regime: IRS,” Allyson Versprille, June 6, 2017

No Comments

Leave a comment
Comment Information

As Seen On

NBC ABC Fox News Channel USA Today BIO - The Biography Channel CBS
NBC ABC Fox News Channel USA Today BIO - The Biography Channel CBS

Schedule a No Obligation Tax Consultation

Contact us today and get relief from your tax burden. You can also receive a FREE chapter from the best-selling book, Protect and Defend, just by requesting it from the form below.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Law Firm of Lance R. Drury
150 Merchant Street
Ste. Genevieve, MO 63670

Phone: 314-200-0003
Fax: 573-883-3095
Ste. Genevieve Law Office Map

St. Louis Office
3636 South Geyer Road, Suite 100
St. Louis, MO 63127

Phone: 314-200-0003
Fax: 314-238-7201

Columbia Office
3610 Buttonwood Drive, Suite 200
Columbia, MO 65201

Phone: 573-886-8900
Fax: 573-886-8901

Facebook Twitter You Tube Linked In Rss Feed
Review Us

Back to Top

"The choice of a lawyer is an important decision and should not be based solely upon advertisements."

- Lance

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.