HOW CAN A PARTNERSHIP CHANGE ITS PARTNERSHIP REPRESENTATIVE?

Can a Partnership Change Its Representative?

It cannot be stressed enough how important your choice of a Partnership Representative is. Once a Partnership Representative is designated on a partnership’s IRS Form 1065, U.S. Return of Partnership Income, the designation cannot be changed at any time, for any reason, unless and until:

1. The IRS initiates an examination of the partnership, or
2. The partnership files an Administrative Adjustment Request (AAR), the partnership version of an amended return.

An AAR cannot be filed simply to change the Partnership Representative designation. The practical implication of this rule is that if the partnership selects a partner to be the Partnership Representative and the partner leaves the partnership, the partnership cannot change that designation with the IRS unless and until the IRS initiates an examination of the partnership, or the partnership requests an amendment to the tax return for the taxable year at issue.