Partnership Audits

Updated July 2019

The issue

In 2015, Congress passed changes to the partnership audit rules included in the Internal Revenue Code. The new changes were effective Jan. 1, 2018, with IRS audits under the new regulations scheduled to begin in 2020 or 2021. The new changes allow the IRS to audit, assess and collect partnership taxes at the entity level. 

States will need to conform with the federal changes to be able to collect state liabilities resulting from an IRS partnership audit.

MNCPA supported changes were included in the Senate omnibus tax bill but were not part of the final tax bill signed by Gov. Walz. 

The MNCPA will continue its efforts to update Minnesota’s partnership audit regulations. 

Why you should care

CPAs work with or for many businesses that are organized as partnerships. Uniform reporting standards reduce complexity and compliance costs while providing certainty for partnerships whose partners may be in multiple taxing jurisdictions. 

What you can do

Contact your legislators and ask them to support model legislation that would provide uniform application of the partnership audit rules and reduce complexities for taxpayers and tax administrators. 

Influencing positive change

MN State Capitol

With the help of your donations to the MNCPA PAC, we have had great success at the Capitol throughout the past decade.

Reasons to contribute:

  • Carry a unified message on CPA issues to legislators.
  • Raise CPAs' visibility at the Capitol.
  • Continue the proven track record of success.

Contribute to the PAC