Centralized Partnership Audit Regime - General Overview
Author: A.J. Reynolds
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
The Partnership Centralized Audit Regime (CPAR), also known as the Bipartisan Budget Act (BBA) of 2015, is a set of rules that govern how the Internal Revenue Service (IRS) audits and adjusts the tax liability of partnerships. Prior to the CPAR, the IRS had to audit each partner individually, which was a complex and time-consuming process. The CPAR was introduced to simplify and streamline the partnership audit process.
Publication Date: July 2025
Designed For
All Tax Professionals that prepare Partnership and LLC Form 1065 tax returns.
Topics Covered
- Centralized Partnership Audit Regime (CPAR)
- Bipartisan Budget Act (BBA) of 2015
- Partnership Agreements under BBA
- Review Year & Adjustment Year
- Assessment
- Electing out of CPAR
- Qualifying Owners
- Non-qualifying Owners
- Election Language
- Partnership Agreements and the "PR"
- Power of Attorney (POA)
- BBA Roadmap for Taxpayers
- What is an AAR?
- BBA Issues
- Forms
Learning Objectives
- Describe the 2015 BBA
- Explain the importance of a partnership agreement
- Identify who can elect out of CPAR
- Identify who cannot elect out of CPAR
- Descirbe the filing of an AAR
- Explain issues partnerships run into due to CPAR
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
