Partnership Tax Reporting & Audit Rules

Federal

General Information:

• IRS – Partnership Statistics
• Large Partnerships: With Growing Number of Partnerships, IRS Needs to Improve Audit Efficiency, GAO, GAO-14-732, Sep. 2014
• U.S. Treasury Department Presentation – Partnerships and Partners – Who and How Much? (MTC Uniformity Committee – July 2016)
• Report – Business in the United States: Who Owns It and How Much Tax do They Pay? (2016)
• The Use of Schedule K-1 Data to Address Taxpayer Noncompliance Can Be Improved, Treasury Inspector General Report (Partially Redacted – 2019)
• IRS – Report on Attacking the Tax Gap (noting the importance of passthrough information reporting) – Sep. 7, 2021
• Centralized Partnership Audit Regime Rules Have Been Implemented; However, Initial No-Change Rates Are High and Measurable Goals Have Not Been Established, Treasury Inspector General Report, Mar. 17, 2022
• Tax Enforcement: IRS Audit Processes Can Be Strengthened to Address a Growing Number of Large, Complex Partnerships – GAO, GAO-23-106020, Jul. 27, 2023
• IRS to Audit High Weath Taxpayers and Partnerships Using AI – IRS publication, Sept. 8, 2023

Withholding Requirements:

• General Information – IRS Webpage – Partnership Withholding
• Final Regulations – Withholding of Tax and Information Reporting With Respect to Interests in Partnerships Engaged in a United States Trade or Business

Audit Rules

• Federal Centralized Partnership Audit Regime Overview – IRS Website
• IRS Publication – Partnership Field Examination Procedures

State

 Withholding, Composite Return & Reporting Information

•  Alabama – Ala. Code § 40-18-24.2
• Arizona –  Arizona Individual Tax Ruling 16-2 (Sept. 13, 2016)
• Arkansas – Ark. Code Ann. § 26-51-919 and Arkansas Dept. of Fin. & Admin., Rule 2006-3 
• California – Cal. Rev. & Tax. Code § 18662, Cal. Code Regs. tit. 18, § 18662-4, and  Cal. Rev. & Tax. Code § 18535 –  Agency Website
• Colorado – Colo. Rev. Stat. § 39-22-601
• Delaware – Del. Code Ann. tit. 30, § 1158 and Del. Code Ann. tit. 30, § 1606
• Georgia – Ga. Code Ann. § 48-7-129, Ga. Code Ann. § 48-7-128, and Ga. Comp. R. & Regs. r. 560-7-8-.34
• Hawaii – Haw. Rev. Stat. § 235-64.2 and Haw. Rev. Stat. § 235-128
• Idaho – Idaho Code § 63-3036B and Idaho Code § 63-3022L
• Illinois – 35 Ill. Comp. Stat. 5/709.5 – Agency Website
• Indiana – Ind. Code Ann. § 6-3-4-12,  Ind. Code Ann. § 6-3-4-13, and Agency Website
• Iowa – Iowa Code Ann. § 422.16B and Iowa Admin. Code r. 701-46.4
• Kansas – Kan. Admin. Regs. 92-12-106 and Agency Website
• Kentucky – Ky. Rev. Stat. Ann. § 141.206 and Agency Website
• Louisiana – La. Rev. Stat. Ann. § 47:201.1, La. Admin. Code tit. 61, § I.1401, and Agency Website
• Maine – Me. Rev. Stat. Ann. tit. 36, § 5250-B, Code Me. R. § 18-125-805, and Agency Website
• Maryland – Md. Code Ann. Tax-Gen. § 10-102.1 and Agency Website
• Massachusetts – Mass. Regs. Code tit. 830, § 62B.2.2, Mass. Regs. Code tit. 830, § 62.5A.1, and Agency Website
• Michigan – Mich. Comp. Laws § 206.315 and Mich. Comp. Laws § 206.703
• Minnesota – Minn. Stat. § 290.92, Minn. Stat. § 289A.08, and Agency Website
• Mississippi – Miss. Code Ann. § 27-7-25, Miss. Code Ann. § 27-8-19, and Miss. Regs. § 35.III.09.01.101-105
• Missouri – Mo. Rev. Stat. § 143.411, Mo. Rev. Stat. § 143.471, Mo. Code Regs. Ann. tit. 12, § 10-2.190, and Agency Website
• Montana – Mont. Code Ann. § 15-30-3313, Mont. Admin. R. 42.9.104-106, Mont. Code Ann. § 15-30-3312, Mont. Admin. R. 42.9.201-204, and Agency Website
• Nebraska – Neb. Rev. Stat. § 77-2727 and Neb. Admin. R. & Regs. § 25-003
• New Jersey – N.J. Rev. Stat. § 54:10A-15.11, N.J. Admin. Code tit. 18, § 35-5.2, and Agency Website
• New Mexico – N.M. Stat. Ann. § 7-3A-2 and Agency Website
• New York – N.Y. Tax Law § 658 and N.Y. Comp. Codes R. & Regs. tit. 20, § 151.17
• North Carolina – N.C. Gen. Stat. § 105-154, N.C. Gen. Stat. § 105-131.7, and Agency Website
• North Dakota – N.D. Cent. Code § 57-38-31.1 and Agency Website
• Ohio – Ohio Rev. Code Ann. § 5733.41, Ohio Rev. Code Ann. § 5747.08, and Agency Website
• Oklahoma – Okla. Stat. Ann. tit. 68, § 2385.30, Okla. Admin. Code § 710:50-3-54, Okla. Admin. Code § 710:90-3-11, and Okla. Admin. Code § 710:50-19-1
• Oregon – Or. Rev. Stat. § 314.781, Or. Admin. R. 150-314-0520, Or. Admin. R. 150-314-0515, and Agency Website
• Pennsylvania – 72 Pa. Stat. § 7403.2, 72 Pa. Stat. § 7324, and Agency Website
• Rhode Island – R.I. Gen. Laws § 44-11-2.2, R.I. Code Regs. tit. 280, § 20-25-6.8, R.I. Code Regs. tit. 280, § 20-25-7.8, and Agency Website
• South Carolina – S.C. Code Ann. § 12-8-590, S.C. Code Ann. § 12-6-5030, and Agency Website
• Utah – Utah Code Ann. § 59-10-1403.2, Utah Admin. Code § R865-9I-13, and Agency Website
• Vermont – Vt. Stat. Ann. tit. 32, § 5914, Vt. Stat. Ann. tit. 32, § 5920, and Agency Website
• Virginia – Va. Code Ann. § 58.1-486.2, Va. Code Ann. § 58.1-395, and Agency Website
• West Virginia – W. Va. Code § 11-21-71a, W. Va. Code § 11-21-51a, W.Va. Code R. tit. 110, § 110-21-51a, and Agency Website
• Wisconsin – Wis. Stat. § 71.775 and Agency Website

State Audit Rules

• Georgia Code – § 48-7-53
• Wisconsin – 2021 Senate Bill 794

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