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The Bipartisan Budget Act of 2015 (BBA) fundamentally reshaped how the IRS audits partnerships, replacing the old TEFRA rules with a centralized partnership audit regime effective for tax years beginning in 2018. CPA tax advising, representation and preparation of amended tax returns.
The IRS now assesses and collects any tax underpayment (called an Imputed Underpayment or IU) directly at the partnership level, not from individual partners. Partnerships may modify the IU or elect to push out adjustments to partners via statements on their individual returns.