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Hospitals Need to be Aware of the New Partnership Audit Rules

First few Article Sentences

The number one priority for hospitals should be to take care of their patients – not to worry about taxes. Unfortunately, on June 13, 2017, the IRS re-issued controversial audit regulations that could put a huge strain on hospitals that participate as members in LLCs or partnerships, whether it is a joint venture or as a member in a for-profit entity. These new audit rules are not simply a retooling of the way the IRS handles partnership audits. They are a revenue raiser designed to raise almost $10 billion in tax revenues over the next 10 years – a clear sign that more partnership and LLC audits are on the way. The greater likelihood of audits makes it even more important that physicians and health care practices review their operating agreements and partnership agreements to ensure that they have language addressing the relevant issues, and that each member understands the impact of this new audit structure.

Cooper, Esq., Richard S.


McDonald Hopkins LLC

Law, Partnership Audits

August 16, 2017

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