LLC Attorneys Explain New Auditing Parameters for Partnerships and Limited Liability Corporations
DALLAS - Dec. 24, 2015 - PRLog -- Janik Bohmer PLLC, the Dallas, Texas-based law firm, begins adapting future plans for LLC Attorney measures when it comes to helping partnerships come together in the most feasible way possible under HR 1314.
In November 2015, President Obama signed HR 1314, a bill that changes the way LLCs and partnerships can be audited. It also changes the cost of past underpayment and which party bears the cost burden. Most of the changes are based on the number of members involved in the partnerships, but they also impact who is responsible for the audit and how members are registered. This means that every LLC lawyer will need to help individuals who want to form partnerships decide how many members they need to involve and how they want to handle past underpayments where applicable.
In the past, those who wanted to form an LLC would go to an LLC lawyer, knowing their partnership fell under the Tax Equity and Fiscal Responsibility Act of 1982. This act allowed corporations to designate one member as the responsible member for overseeing tax protocols such as IRS audits. Once HR 1314 goes into effect, such an approach will no longer be in accordance to best practice.
HR 1314 requires partnerships involving more than 10 members to not hold any one member in the position of tax matter partner. Instead, someone who is firmly established and active in the US will need to take the position. This person cannot be a member or partner of the LLC in question. When this tax matter representative makes an agreement, he or she does so in the name of the company and the company will consider it binding.
The rates for underpayment will also increase. And rather than one person being responsible, the LLC will be responsible, which means it is spread throughout the entire company and all its members, and in some cases, shareholders. For an LLC lawyer, this means that it may be time to revisit old contracts with clients to change the number of members and address any current underpayments.
There are measures that can be taken in certain circumstances to hold some partnerships and new members exempt, but at the very least, each member will be listed as a member, complete with all identifying information.
For more information or to make an appointment to review or create an LLC with an LLC attorney, visit the Janik Bohmer website or call 214-390-9999.
About Janik Bohmer PLLC
Janik Bohmer, PLLC makes it a point not to just keep up with the changes in LLC laws, but the changes in the economy and the way people do business as well. This means that over the past couple of years the firm has changed their strategy as a way to meet the demands of the current business model. Today, their focus is on the individuals and the companies they want to form so that the people they work with can distinguish between who they are and what the business is.
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Janik Bohmer PLLC
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