Overview
IRS and Treasury Issue Final Partnership Representative Regulations: Today, the IRS and Treasury issued final regulations under section 6223 regarding the designation and authority of the partnership representative under the centralized partnership audit regime enacted as part of the Bipartisan Budget Act of 2015. These final regulations affect partnerships for taxable years beginning after December 31, 2017. The IRS and Treasury also issued final regulations, and removed temporary regulations, regarding the election to apply the centralized partnership audit regime to partnership taxable years beginning after November 2, 2015 and before January 1, 2018.
IRS Issues Guidance on Small Business Provisions of 2017 Tax Law: Revenue Procedure 2018-40 provides the procedures by which a small business taxpayer may obtain automatic consent to change its methods of accounting to reflect certain statutory changes made by section 13012 of P.L. 115-97 and requests comments containing suggestions for future guidance under sections 263A, 447, 448, 460, and 471 to implement these changes. In general, section 13012 expanded the number of small business taxpayers eligible to use the cash method of accounting and exempted certain small business taxpayers from the requirements to capitalize costs under section 263A, to account for certain long-term contracts using the percentage completion method under section 460, and to account for inventories under section 471.