The multinational law firm, Baker McKenzie, has dropped its lawsuit against the Internal Revenue Service (IRS). The firm, via Washington, D.C-based partner George Clarke, had previously sought to obtain a document outlining the IRS’s requests to partnerships, with a particular interest in obtaining more information about the IRS’s audit plans on these entities. This legal action followed mention by an IRS lawyer at a conference of the agency’s plans to strengthen its efforts in auditing such partnerships.
The initial legal action by Baker McKenzie highlighted the complexities and potential challenges companies might face amidst an increased focus by government agencies on auditing partnerships. With this lawsuit now dropped, it is unclear whether Baker McKenzie or other firms will take further steps to seek clarification on the IRS’s future strategies for addressing partnerships. Firms and corporations who operate in the partnership model may want to consider their legal standing and potential exposure to audit in light of these developments.
For more details about Baker McKenzie’s initial lawsuit and their recent withdrawal, you can find additional information at this FeedBlitz article.