Interested in training for your team? Click here to learn more

Partnership Losses in Excess of Basis: Preparing for the IRS' New Audit Campaign

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, June 20, 2023

Recorded event now available

or call 1-800-926-7926

This webinar will prepare pass-through advisers to withstand IRS challenges to partners' basis calculations. Our panel of federal tax experts will guide partners and tax professionals through the calculations necessary to determine a partner's basis in a partnership, the IRS examination, and handling prior period capital account errors.


In February 2022, the IRS announced a partnership campaign to include audits of partners' deductions of flow-through losses from partnerships. The Service believes that partners are deducting losses in excess of basis rather than suspending these losses when required. The IRS heightened its ability to track partners' capital by implementing requirements to report negative tax basis capital in 2019, all partners' capital accounts beginning in 2020, and added disclosures for Section 704(c) built-in gains and losses. The IRS is using data analytics to identify partnerships that are most likely noncompliant.

Practitioners who have been scrambling to meet these added reporting requirements must prepare to defend these positions and the calculations reported. Determining a partner's outside basis, including whether tax basis capital has been appropriately captured and a partner's share of liabilities, is complicated. Recent reporting rules have led to the discovery of allocation errors.

Pass-through entity advisers need to prepare for upcoming examinations and know how to handle audits of pass-through entities.

Listen as our panel of IRS examination experts explains how to properly maintain and support partners' basis in partnerships and how to defend these calculations when representing partners.



  1. IRS' partnership basis compliance campaign
  2. Determining outside basis
    1. Tax basis capital
    2. Liabilities
    3. Section 743(b) basis adjustments
  3. Handling past errors
    1. BBA partnerships
    2. Amended returns
    3. Unresolved differences
  4. Handling the IRS examination
  5. Best practices


The panel will cover these and other critical issues:

  • How to maintain, calculate, and document basis by partner
  • Tips for handling an IRS audit of a partner's basis
  • How to appropriately resolve past capital account allocation errors
  • How the new BBA partnership audit rules affect basis examinations


Horwitz, Robert
Robert Horwitz

Hochman Salkin Toscher Perez

Mr. Horwitz has over 35 years of experience as a tax attorney specializing in the representation of clients in civil...  |  Read More

Stigile, Cory
Cory Stigile

Hochman Salkin Toscher Perez

Mr. Stigile specializes in tax controversies as well as tax, business, and international tax. His representation...  |  Read More

Behrendt, Philipp
Philipp Behrendt

Hochman Salkin Toscher Perez

Mr. Behrendt is an Associate at Hochman Salkin Toscher Perez P.C., licensed in California as well as in Germany...  |  Read More

Access Anytime, Anywhere

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.