Category: Taxation

NEW IRS RELEASE RE: PASSIVE ACTIVITY AND AT RISK RULES

By , February 5, 2016 10:10 am

LLC lawyers should have at least a basic understanding of the IRC passive activity and at risk rules.   Today’s Tax Notes has advised that IRS has just released Publication 925 (rev. 2015), Passive Activity and At-Risk Rules, for use in preparing 2015 returns, discussing the passive activity and at-risk rules that may limit the amount of a taxpayer’s deductible loss from a trade, business, rental, or other income-producing activity.

PARTNERSHIP TAXATION

By , May 28, 2014 7:22 am

Most multi-member LLCs are taxable as partnerships.  Thus, I follow developments in federal and state partnership taxation.  Most of the developments are technical, but here’s one from a CCH newsletter that every LLC lawyer who deals with partnership tax issues should know:

Form 1065. The Chief Counsel advised that Form 1065 should not be referred to as a “Partnership tax return.”  It is not a tax         return, it is an information return. Thus, it should be referred to as the Form 1065 or the partnership return.—CCA 201418052