The PR has much greater authority and responsibility than the TMP. Thus, a Partnership can have a different PR for different tax years. ![]() For tax years beginning on or after January 1, 2018, all Partnerships must designate the PR on their annual tax return. Contrary to the old rules regarding TMPs, the PR need not be a partner of the Partnership. The concept of a TMP is now replaced by a “partnership representative” (the “PR”). Most Partnership agreements designated such a person, and if not, the law recognized the partner with the largest percentage interest as the TMP. Partnership RepresentativeĪll Partnerships have had to designate a “tax matters partner” (the “TMP”). Important statutory changes are now in effect concerning entities taxed as partnerships, including general partnerships, limited partnerships, and most multi-member limited liability companies (referred to below as “Partnerships”), and the Internal Revenue Service (the “Service”) recently released new Form 1065 (the tax return for Partnerships) to take into account the statutory changes. ![]() ![]() New Rules for Entities Taxed as Partnerships and New Partnership Tax Return (Form 1065)
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