The budget agreement passed by the House of Representatives on Oct. 28 contains a measure that would change the procedures on how partnerships are audited for tax purposes.
The measure reflects most of the changes requested earlier this year by Nareit, The Real Estate Roundtable and other real estate groups. Specifically, the budget bill does not include a liability provision opposed by NAREIT and the organizations. Additionally, the bill does not identify REITs as triggering partners for purposes of applying the new audit rules.
UPDATE: President Obama signed the bill into law on Nov. 2, 2015.
- JCT Technical Explanation of the Tax Technical Corrections Act of 2016 - 12/6/16
- Excerpt from the Statutory Language of the Bipartisan Budget Act of 2015 - 11/02/15
- Summary of Partnership Tax Audit Provisions of Budget Legislation - 10/26/15
- H.R. 2821 as introduced by Reps. Renacci and Kind - 6/18/15