Tax Strategy
Tax strategy is about far more than reducing this year's tax bill.
These articles explore proactive planning, entity selection,
owner compensation, state tax considerations, and the decisions that help privately held businesses
operate more efficiently over the long term.
Audit Shock: When the Partnership Pays the Tax
Under the BBA audit rules, the IRS no longer chases down individual partners for tax on audit adjustments. Instead, the partnership itself can be on the hook - leaving today’s partners paying for yesterday’s mistakes. This article breaks down how the rules work, including the imputed underpayment, the timing mismatch between the reviewed year and the adjustment year, the push-out election that can shift the burden back to reviewed-year partners, and provides some practice pointers.
BBA Partnership Audits: What Every Partnership Needs to Know
The IRS has fundamentally changed how it audits partnerships - and every partnership, no matter how small, needs to pay attention. The Bipartisan Budget Act (BBA) created a centralized audit regime that shifts tax liability to the partnership itself, putting current partners at risk for past errors. This article explains the origin of the BBA, what it replaced, and the key actions every partnership should take to avoid costly surprises under the new audit rules.
How to Structure Owner Compensation for Tax Efficiency
How you pay yourself as a business owner isn’t just a paycheck decision - it’s a tax strategy. For S corporation owners, the IRS says you’re both an employee and a shareholder, which means balancing W-2 wages with profit distributions. Partnerships follow a different playbook, using draws and guaranteed payments instead of salaries. The right mix can lower payroll taxes, maximize retirement contributions, and keep you compliant. Here’s how to structure owner compensation for tax efficiency - and avoid costly mistakes.
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Tax decisions rarely exist in isolation.
