Oh? The In-Laws Are Visiting? Managing Related-Party Transactions

Learn more about the tax restrictions and limitations on related-party transactions that apply to partnerships and other flow-through entities. Because partnership tax items generally flow through directly to partners/LLC members, and do not remain with the entity, certain transactions at the entity level can result in tax consequences that the Internal Revenue Code never intended. Consequently, the federal tax code appropriately limits and restricts the unintended tax effects of these inappropriate transactions.

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  • Exempt Organizations. IRS announces that it is suspending issuance of several notices generally mailed to tax-exempt or governmental entities in case of delinquent returns. Due to the pandemic, the IRS hasn't processed several million returns filed by individuals and entities. The suspension of notifications will help avoid confusion when a filing is still in process. IRS Exempt Organizations Update.

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