📊IRS Final Rules on Partnership Related-Party Transactions of Interest
Certain Partnership Related-Party Basis Adjustment Transactions as Transactions of Interest
Summary
This document contains final regulations that identify certain partnership related-party basis adjustment transactions and substantially similar transactions as transactions of interest, a type of reportable transaction. Material advisors and certain participants in these transactions are required to file disclosures with the IRS and are subject to penalties for failure to disclose. The final regulations affect participants in these transactions as well as material advisors.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
$$ - Med
The regulations impose compliance requirements on businesses engaging in specific partnership related-party transactions, necessitating disclosures about transactions of interest, which could lead to financial penalties for non-compliance. This affects material advisors and participants in such transactions, thus creating a need for heightened awareness and compliance strategies in financial reporting.