Monte Jackel Quoted in Tax Notes Article on New Audit Regime
Akin Gump senior counsel Monte Jackel has been quoted in the Tax Notes article “Implementing the New Audit Regime and Tax Reform,” regarding new partnership audit provisions and the prospect of big changes in the way partnerships are taxed. The changes, the article reports, have raised many questions about the implementation of the audit regime, whose final regulations might not be released until next year.
Partnerships don’t seem to be in a rush to amend their agreements as they wait on final and additional proposed rules, said Jackel. “In order to make a rational decision about what you want to put in a partnership agreement, you really should know what the capital accounts of the partners will look like, what the allocation flexibilities are in terms of payment of taxes and adjusted items that occur either at the partnership or the partner level, and the tax basis of assets held by the partnership and the partners’ tax basis in their partnership interests,” he said.
“If Congress does actual reform,” Jackel said, “it would be a great disservice if they didn’t delay this audit statute for a year or two before it becomes effective.”