The extended IRS Form 1065 filing deadline for the 2019 tax year will be 15 September 2020. Funds that have launched in 2019 or are otherwise considering the appointment of a U.S. Partnership Representative should ensure that they meet this deadline.

The new partnership audit rules that came into effect for tax years beginning 1 January 2018, require partnerships (or entities treated as partnerships for tax purposes) to appoint a Partnership Representative for each tax year.

The Partnership Representative must be named on the partnership tax return Form 1065. The Partnership Representative must also have a substantial presence in the United States. A substantial presence requires the Partnership Representative to have the following in place:

• a U.S. taxpayer identification number
• a U.S. telephone number and a U.S. street address
• the availability to meet in person with the IRS at a reasonable time and place and;
• if the Partnership Representative is an entity, the partnership must appoint an individual who meets the substantial presence requirements to act as the “designated individual” of the entity serving as Partnership Representative.

The Partnership Representative has the power to bind the partnership and all partners with respect to the audit process, therefore ES recommends that every partnership should select and appoint its own partnership representative. If a partnership does not appoint its own partnership representative, the IRS can select any person to serve as Partnership Representative with the power to bind the partnership and all its partners.

THE ES PARTNERSHIP REPRESENTATIVE SOLUTION

ES provides Partnership Representative solutions that meet all IRS requirements. Our team has extensive experience in U.S. tax and compliance matters, working directly with many leading U.S. tax professionals and investment managers. As partnership representatives, we work closely with general partners and professional advisors to ensure any actions are taken in the best interests of the partnership.

The new partnership audit rules of the U.S. Internal Revenue Service (IRS) will replace the Tax Matters Partner and require partnerships to appoint a Partnership Representative for each tax year. The Partnership Representative will have to be named on the partnership tax return (Form 1065) effective for tax years beginning 1 January 2018.

KEY DIFFERENTIATORS OF ES PARTNERSHIP REPRESENTATIVE SERVICES

SCALE AND LENGTH OF SERVICE
Visibility and access to the best global fund governance + risk + compliance practices.
18+ years delivering market leading solutions to the investment management community.

POOL OF EXPERIENCED PARTNERSHIP REPRESENTATIVES
A pool of highly skilled and experienced compliance specialists with extensive fund governance and regulatory experience.

GLOBAL FIRM WITH LOCAL KNOWLEDGE
9 global locations servicing clients across 6 time zones with a robust U.S. presence.

For additional information, please contact your usual ES professional or any one of our team listed here to assist you in evaluating your service options.