The IRS in TD 9839 issued the final regulations outlining the rules applicable to the partnership representative under the Centralized Partnership Audit Regime (CPAR).  These regulations, found at Reg. §§301.6223-1 and 301.6223-2, outline the qualifications for a representative, how the representative resigns or is removed and the powers of the representative.

The IRS also finalized the regulations on the election to apply the CPAR rules to examinations of years beginning after the enactment of the Bipartisan Budget Act of 2015 but before January 1, 2018.  Those regulations, found at Reg. §301.9100-22, were adopted in final form without change and the temporary regulations were removed.

Image copyright choreograph / 123RF Stock Photo

The taxpayer in the case of American Milling, LP v. Commissioner, TC Memo 2015-192 argued that the Tax Court lacked jurisdiction to hear the case where the IRS would ultimately push a tax assessment down to a real taxpayer.