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USTAXFS Corporate & Business Services

Partnership Representative Services

Entities that are either a US-based or foreign partnership are required to designate a Partnership Representative to serve as the direct contact with the IRS for all taxable years.

This change to the law, introduced as part of the Bipartisan Budget Act of 2015, is effective for tax years beginning after December 31, 2017 and applies to any domestic or foreign partnership that is required to file a US partnership return (Form 1065) in the US. This can be the partnership itself, another entity, or a disregarded entity (powers of attorney are not acceptable). However, if another entity is chosen, it also must appoint a designated individual for each tax year. The Partnership Representative and any Designated Individual must maintain a “substantial presence” in the US as defined by the updated centralised audit regime.

We can provide services to LPs, GPs and LLCs.

Our services as Partnership Representative:

  • We meet the required Substantial Presence Test
  • We designate a named individual on US partnership tax returns for each taxable year
  • We liaise with the partnership’s legal representation to ensure regulations and requirements are met
  • Our agreement makes it clear that we do not act without express instruction from our client.
  • In the event of an audit, USTAXFS will defer to the firm’s local US accountant but are happy to assist to facilitate timely responsiveness where requested.

It is strongly recommended that entities appoint a trusted and knowledgeable Partnership Representative. If a partnership does not appoint its own representative, the IRS can select any person to serve as Partnership Representative.   The Partnership Representative has the power to negotiate with the IRS and any agreement signed with the IRS by the Partnership Representative is binding on behalf of the partnership and the partners.

The extended filing deadline for Form 1065 for the 2020 tax year was September 15, 2021. The due date for 2021 partnership returns is March 15, 2022.

Contact us for more information.

Did you Know?

  • Fact Seven

    Thanks to FATCA banks must disclose their American account holders to the IRS or local tax authority.
  • Fact Six

    The IRS is actively looking for non compliant US persons.
  • Fact Five

    It takes an average of 16 hours to do IRS Form 1040.
  • Fact Four

    There are over 500 IRS tax forms.
  • Fact Three

    Since 1916, illegal income has been taxable.
  • Fact Two

    US persons must file tax
    returns no matter where they live and work.
  • Text One

    7 million Americans abroad
    only 500,000 compliant