Legislative update: President signs “Budget Act,” partnership reforms enacted

Partnership tax provisions are enacted

President Obama today signed into law H.R. 1314, the “Bipartisan Budget Act of 2015.”

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The legislation suspends the limit on public debt (the “debt ceiling”) through March 15, 2017, and increases defense and discretionary spending for fiscal years 2016 and 2017 above the levels set by the Budget Control Act of 2011. 

The revenue offsets include changes to pension funding, including amending section 430(h)(3) of the Code (relating to mortality tables), and two partnership-related tax provisions:

  • Changes to the rules for partnership audits and adjustments
  • Amendments to Code sections 704(e) and 761(b) relating to the determination of who is a partner in a partnership

Preliminary analysis of partnership provisions

KPMG LLP has prepared a report providing a preliminary analysis of the partnership tax provisions in the “Budget Act.”

 

Read KPMG Report: Preliminary Analysis of Partnership Tax Changes in Budget Act [PDF 185 KB] 

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