For many partnerships and investment funds, September 15 is an important tax filing deadline. As tax returns are being finalized, there is one item that should not be overlooked: the designation of the Partnership Representative.
Under the federal partnership audit regime established by the Bipartisan Budget Act of 2015, partnerships subject to the regime generally designate a Partnership Representative on their federal partnership tax return. This is not simply an administrative title. The Partnership Representative has significant authority to act on behalf of the partnership in dealings with the Internal Revenue Service under the centralized partnership audit rules.
For investment managers, fund administrators, tax professionals, and offshore funds with U.S. filing obligations, it is important to make sure the designation is addressed as part of the return preparation process.
A&C Corporate Services provides U.S. Partnership Representative services for domestic and offshore investment funds and partnerships. We work with investment managers and their professional advisers to provide a U.S.-based Partnership Representative where one is needed.
As the September 15 filing deadline approaches, waiting until the final days can create unnecessary pressure. If a tax preparer is completing the partnership return and discovers that a Partnership Representative still needs to be designated, the issue should be addressed promptly rather than delaying the filing process.
The Partnership Representative role is different from tax preparation or tax advisory services. A&C Corporate Services does not prepare the partnership’s tax return or provide tax advice. Instead, we serve in the designated Partnership Representative role and coordinate with the partnership and its professional advisers as appropriate.
If your partnership or fund already has a Partnership Representative, this is also a good time to confirm that the information being reported on the return is accurate and current.
If your fund is finalizing its return for September 15 and still needs a U.S. Partnership Representative, do not leave the designation until the last minute.
Contact A&C Corporate Services as soon as possible. Our team can discuss the Partnership Representative engagement and help get the necessary arrangement in place so your tax professionals can move forward with the return.
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