{"component": "clause", "props": {"groups": [{"snippet": "12.7.1 The Manager shall be the \u201cpartnership representative\u201d for purposes of Code Sections 6223 and 6231 and shall, at the Company\u2019s expense, cause to be prepared and timely filed after the end of each taxable year of the Company all federal and state income tax returns required of the Company for such taxable year. If any state or local tax law provides for a partnership representative or Person having similar rights, powers, authority or obligations, the Manager shall also serve in such capacity.\n12.7.2 If any audit adjustment results in an underpayment of tax that is imputed to the Company and would be assessed and collected at the Company level in the period that the adjustment becomes final, the Company may, in the sole discretion of the Manager, elect:\n(a) to pay an imputed underpayment as calculated under Code Section 6225(b) with respect to such adjustment, including interest, penalties and related tax (\u201cImputed Underpayment\u201d) in the Adjustment Year or otherwise take the Internal Revenue Service adjustment into account in the Adjustment Year. The Manager shall use commercially reasonable efforts to reduce the amount of such Imputed Underpayment on account of the tax-exempt status (as defined in Code Section 168(h)(2)) of any Members as provided in Code Section 6225(c)(3). Each Member agrees to indemnify and hold harmless the Company and the Manager from and against any liability with respect to the Member\u2019s proportionate share of any Imputed Underpayment, regardless of whether such Member is a Member in the Adjustment Year, and to promptly pay its proportionate share of any Imputed Underpayment to the Company within 15 days following the Manager\u2019s request for payment and any amount that is not funded shall be treated as a Tax Payment under Section 4.12.\n1. Each Member\u2019s (or former Member\u2019s) proportionate share shall be determined by the Manager in good faith taking into account each Member\u2019s (or former Member\u2019s) particular status, including its tax-exempt or non-United States status, its interest in the Company in the Reviewed Year, and its timely provision of information necessary to reduce the amount of Imputed Underpayment set forth in Code Section 6225(c); or\n(b) under Code Section 6226(a), to cause the Company to issue adjusted Schedule K-1s or any other similar statement prescribed by the Code, Treasury Regulations or other administrative guidance published by the Internal Revenue Service or other taxing authority to each applicable Member for the Reviewed Year, who will then be required to pay their allocable share of tax otherwise attributable to the Company. Each Member hereby agrees and consents to such election and agrees to take any action, and furnish the Manager with any information necessary to give effect to such election, as required by such Code Section and applicable Treasury Regulations or other administrative guidance published by the Internal Revenue Service or other taxing authority.", "size": 12, "samples": [{"hash": "27u1F1jTdYA", "uri": "/contracts/27u1F1jTdYA#partnership-audit-rules", "label": "Limited Liability Company Agreement (Vivakor, Inc.)", "score": 32.2772064209, "published": true}, {"hash": "1KT7tRjd1eC", "uri": "/contracts/1KT7tRjd1eC#partnership-audit-rules", "label": "Limited Liability Company Agreement (Vivakor, Inc.)", "score": 32.2772064209, "published": true}, {"hash": "eClokU4Frl9", "uri": "/contracts/eClokU4Frl9#partnership-audit-rules", "label": "Limited Liability Company Agreement (Vivakor, Inc.)", "score": 32.1156730652, "published": true}], "snippet_links": [{"key": "partnership-representative", "type": "clause", "offset": [33, 59]}, {"key": "for-purposes-of", "type": "clause", "offset": [61, 76]}, {"key": "be-prepared", "type": "clause", "offset": [151, 162]}, {"key": "timely-filed", "type": "definition", "offset": [167, 179]}, {"key": "taxable-year", "type": "definition", "offset": [202, 214]}, {"key": "of-the-company", "type": "clause", "offset": [215, 229]}, {"key": "state-income-tax-returns", "type": "clause", "offset": [246, 270]}, {"key": "local-tax-law", "type": "definition", "offset": [334, 347]}, {"key": "audit-adjustment", "type": "clause", "offset": [518, 534]}, {"key": "to-the-company", "type": "clause", "offset": [585, 599]}, {"key": "the-period", "type": "clause", "offset": [660, 670]}, {"key": "the-adjustment", "type": "clause", "offset": [676, 690]}, {"key": "sole-discretion-of-the-manager", "type": "clause", "offset": [730, 760]}, {"key": "to-pay", "type": "clause", "offset": [773, 779]}, {"key": "imputed-underpayment", "type": "definition", "offset": [783, 803]}, {"key": "code-section", "type": "definition", "offset": [824, 836]}, {"key": "with-respect-to", "type": "clause", "offset": [845, 860]}, {"key": "related-tax", "type": "clause", "offset": [912, 923]}, {"key": "adjustment-year", "type": "definition", "offset": [956, 971]}, {"key": "service-adjustment", "type": "definition", "offset": [1011, 1029]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [1085, 1120]}, {"key": "exempt-status", "type": "definition", "offset": [1193, 1206]}, {"key": "each-member", "type": "definition", "offset": [1301, 1312]}, {"key": "indemnify-and-hold-harmless", "type": "clause", "offset": [1323, 1350]}, {"key": "the-company-and-the", "type": "clause", "offset": [1351, 1370]}, {"key": "to-the-member", "type": "clause", "offset": [1423, 1436]}, {"key": "proportionate-share", "type": "clause", "offset": [1439, 1458]}, {"key": "a-member", "type": "definition", "offset": [1525, 1533]}, {"key": "following-the", "type": "definition", "offset": [1660, 1673]}, {"key": "request-for-payment", "type": "definition", "offset": [1684, 1703]}, {"key": "tax-payment", "type": "clause", "offset": [1760, 1771]}, {"key": "former-member", "type": "definition", "offset": [1813, 1826]}, {"key": "by-the-manager", "type": "clause", "offset": [1870, 1884]}, {"key": "in-good-faith", "type": "definition", "offset": [1885, 1898]}, {"key": "united-states", "type": "definition", "offset": [2005, 2018]}, {"key": "company-in", "type": "clause", "offset": [2047, 2057]}, {"key": "reviewed-year", "type": "definition", "offset": [2062, 2075]}, {"key": "timely-provision-of-information", "type": "clause", "offset": [2085, 2116]}, {"key": "to-issue", "type": "clause", "offset": [2263, 2271]}, {"key": "the-code", "type": "clause", "offset": [2340, 2348]}, {"key": "administrative-guidance", "type": "clause", "offset": [2380, 2403]}, {"key": "authority-to", "type": "definition", "offset": [2462, 2474]}, {"key": "applicable-member", "type": "definition", "offset": [2480, 2497]}, {"key": "allocable-share", "type": "clause", "offset": [2560, 2575]}, {"key": "any-action", "type": "definition", "offset": [2697, 2707]}, {"key": "give-effect-to", "type": "definition", "offset": [2767, 2781]}, {"key": "as-required-by", "type": "clause", "offset": [2797, 2811]}, {"key": "applicable-treasury-regulations", "type": "definition", "offset": [2834, 2865]}], "hash": "dc9a25ede36498ae6c18abf6c159f40d", "id": 1}, {"snippet": "13.6.1 The Administrative Manager shall be the \u201cpartnership representative\u201d for purposes of Code Sections 6223 and 6231, as amended by Section 1101 of the Bipartisan Budget Act of 2015, and shall, at the Company\u2019s expense, cause to be prepared and timely filed after the end of each taxable year of the Company all federal and state income tax returns required of the Company for such taxable year. If any state or local tax law provides for a partnership representative or Person having similar rights, powers, authority or obligations, the Administrative Manager shall also serve in such capacity. The Company shall make such elections pursuant to the provisions of the Code as the Administrative Manager, in its sole discretion, deems appropriate (including, in the Administrative Manager\u2019s sole discretion, an election under Code Section 754 or an election to have the Company treated as an \u201celecting investment partnership\u201d for purposes of Code Section 743).\n13.6.2 If any audit adjustment results in an underpayment of tax that is imputed to the Company and would be assessed and collected at the Company level in the period that the adjustment becomes final, the Company may, in the sole discretion of the Administrative Manager, elect:\n(a) to pay an imputed underpayment as calculated under Code Section 6225(b) with respect to such adjustment, including interest, penalties and related tax (\u201cImputed Underpayment\u201d) in the Adjustment Year or otherwise take the Internal Revenue Service adjustment into account in the Adjustment Year. The Administrative Manager shall use commercially reasonable efforts to reduce the amount of such Imputed Underpayment on account of the tax-exempt status (as defined in Code Section 168(h)(2)) of any Members as provided in Code Section 6225(c)(3). Each Member agrees to indemnify and hold harmless the Company and the Administrative Manager from and against any liability with respect to the Member\u2019s (or former Member\u2019s) proportionate share of any Imputed Underpayment, regardless of whether such Member is a Member in the Adjustment Year, and to promptly pay its proportionate share of any Imputed Underpayment to the Company within 15 days following the Administrative Manager\u2019s request for payment and any amount that is not funded shall be treated as a Tax Payment under Section 4.10.\n1. Each Member\u2019s (or former Member\u2019s) proportionate share shall be determined by the Administrative Manager in good faith taking into account each Member\u2019s (or former Member\u2019s) particular status, including its tax-exempt or non-United States status, its interest in the Company in the Reviewed Year, and its timely provision of information necessary to reduce the amount of Imputed Underpayment set forth in Code Section 6225(c); or\n(b) under Code Section 6226(a), as amended by the Bipartisan Act of 2015, to cause the Company to issue adjusted Schedule K-1s or any other similar statement prescribed by the Code, Treasury Regulations or other administrative guidance published by the Internal Revenue Service or other taxing authority to each applicable Member for the Reviewed Year, who will then be required to pay its allocable share of tax otherwise attributable to the Company. Each Member hereby agrees and consents to such election and agrees to take any action, and furnish the Administrative Manager with any information necessary to give effect to such election, as required by such Code Section and applicable Treasury Regulations or other administrative guidance published by the Internal Revenue Service or other taxing authority.", "size": 3, "samples": [{"hash": "bFySfFLFdDH", "uri": "/contracts/bFySfFLFdDH#partnership-audit-rules", "label": "Limited Liability Company Agreement (Vivakor, Inc.)", "score": 32.2772064209, "published": true}, {"hash": "k7ClgnVKlGy", "uri": "/contracts/k7ClgnVKlGy#partnership-audit-rules", "label": "Limited Liability Company Agreement (Vivakor, Inc.)", "score": 32.1156730652, "published": true}], "snippet_links": [{"key": "administrative-manager", "type": "definition", "offset": [11, 33]}, {"key": "partnership-representative", "type": "clause", "offset": [48, 74]}, {"key": "for-purposes-of", "type": "clause", "offset": [76, 91]}, {"key": "as-amended", "type": "definition", "offset": [121, 131]}, {"key": "section-1101", "type": "clause", "offset": [135, 147]}, {"key": "bipartisan-budget-act-of-2015", "type": "definition", "offset": [155, 184]}, {"key": "be-prepared", "type": "clause", "offset": [232, 243]}, {"key": "timely-filed", "type": "definition", "offset": [248, 260]}, {"key": "taxable-year", "type": "definition", "offset": [283, 295]}, {"key": "of-the-company", "type": "clause", "offset": [296, 310]}, {"key": "state-income-tax-returns", "type": "clause", "offset": [327, 351]}, {"key": "local-tax-law", "type": "definition", "offset": [415, 428]}, {"key": "the-company-shall", "type": "clause", "offset": [600, 617]}, {"key": "the-code", "type": "clause", "offset": [668, 676]}, {"key": "sole-discretion", "type": "definition", "offset": [715, 730]}, {"key": "election-under", "type": "clause", "offset": [814, 828]}, {"key": "section-754", "type": "clause", "offset": [834, 845]}, {"key": "investment-partnership", "type": "clause", "offset": [905, 927]}, {"key": "audit-adjustment", "type": "clause", "offset": [978, 994]}, {"key": "to-the-company", "type": "clause", "offset": [1045, 1059]}, {"key": "the-period", "type": "clause", "offset": [1120, 1130]}, {"key": "the-adjustment", "type": "clause", "offset": [1136, 1150]}, {"key": "to-pay", "type": "clause", "offset": [1248, 1254]}, {"key": "imputed-underpayment", "type": "definition", "offset": [1258, 1278]}, {"key": "with-respect-to", "type": "clause", "offset": [1320, 1335]}, {"key": "related-tax", "type": "clause", "offset": [1387, 1398]}, {"key": "adjustment-year", "type": "definition", "offset": [1431, 1446]}, {"key": "service-adjustment", "type": "definition", "offset": [1486, 1504]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [1575, 1610]}, {"key": "exempt-status", "type": "definition", "offset": [1683, 1696]}, {"key": "each-member", "type": "definition", "offset": [1791, 1802]}, {"key": "indemnify-and-hold-harmless", "type": "clause", "offset": [1813, 1840]}, {"key": "the-company-and-the", "type": "clause", "offset": [1841, 1860]}, {"key": "to-the-member", "type": "clause", "offset": [1928, 1941]}, {"key": "former-member", "type": "definition", "offset": [1948, 1961]}, {"key": "proportionate-share", "type": "clause", "offset": [1965, 1984]}, {"key": "a-member", "type": "definition", "offset": [2051, 2059]}, {"key": "following-the", "type": "definition", "offset": [2186, 2199]}, {"key": "request-for-payment", "type": "definition", "offset": [2225, 2244]}, {"key": "tax-payment", "type": "clause", "offset": [2301, 2312]}, {"key": "in-good-faith", "type": "definition", "offset": [2441, 2454]}, {"key": "united-states", "type": "definition", "offset": [2561, 2574]}, {"key": "company-in", "type": "clause", "offset": [2603, 2613]}, {"key": "reviewed-year", "type": "definition", "offset": [2618, 2631]}, {"key": "timely-provision-of-information", "type": "clause", "offset": [2641, 2672]}, {"key": "to-issue", "type": "clause", "offset": [2861, 2869]}, {"key": "administrative-guidance", "type": "clause", "offset": [2978, 3001]}, {"key": "authority-to", "type": "definition", "offset": [3060, 3072]}, {"key": "applicable-member", "type": "definition", "offset": [3078, 3095]}, {"key": "allocable-share", "type": "clause", "offset": [3156, 3171]}, {"key": "any-action", "type": "definition", "offset": [3293, 3303]}, {"key": "give-effect-to", "type": "definition", "offset": [3378, 3392]}, {"key": "as-required-by", "type": "clause", "offset": [3408, 3422]}, {"key": "applicable-treasury-regulations", "type": "definition", "offset": [3445, 3476]}], "hash": "99cd26a30f5b5bc4410dfbd48524d073", "id": 2}, {"snippet": "21.1 The Members acknowledge that Section 1101 of the Bipartisan Budget Act of 2015 (the \u201cBipartisan 2015 Act\u201d) repeals the existing partnership audit rules in Subchapter C of Chapter 63 of the Code and replaces them with a new partnership audit and tax collection system that, subject to certain exceptions, will impose liability for federal income tax (as well as penalties, additions to tax and interest) attributable to an adjustment to the Company\u2019s income, gain, loss, deduction and credit (and any Member\u2019s distributive share thereof) on the Company rather than its Members. All Section references in this Paragraph 21 are to the partnership audit provisions of Subchapter C of Chapter 63 of the Code as amended by the Bipartisan 2015 Act and in effect for any relevant Company taxable year (such provisions, together with applicable Treasury Regulations and other IRS guidance, are referred to herein as the \u201cNew Audit Rules\u201d). As used below, the term \u201creviewed year\u201d means the Company\u2019s taxable year to which the item being adjusted relates, and the term \u201cadjustment year\u201d means the Company\u2019s taxable year (i) in which a decision of a court becomes final in a petition for readjustment proceeding brought under Section 6234 of the Code, (ii) in which a request for administrative adjustment is made by the Company under Section 6227 of the Code, or (iii) in any other case, in which a notice of final partnership adjustment is mailed under Section 6231 of the Code.\n21.2 Unless directed to do otherwise by LJC, LLC, the Company shall (i) if eligible, elect to have the New Audit Rules not apply to the Company and (ii) not elect to have the New Audit Rules apply to the Company before their general effective date under the Code.\n21.3 The Company designates itself as the partnership representative (the \u201cCompany Representative\u201d) under Section 6223 of the Code. The Manager with the Approval of LJC, LLC shall from time to time appoint the \u201cDesignated Individual\u201d, as defined in the applicable Treasury Regulations, to act on the Company Representative\u2019s behalf. The initial Designated Individual is set forth on Exhibit 21.3. Subject to the provisions of this Paragraph 21, the Company Representative shall have all of the powers and authority of a partnership representative under the New Audit Rules and shall represent the Company. The Company Representative shall provide to the Members prompt notice of any communication to or from, or agreements with, any federal, state, or local tax authority regarding any Company tax return or other Company tax matter, including a summary of the provisions thereof.\n21.4 Notwithstanding anything contained herein to the contrary, the Company Representative is hereby authorized, only with the consent of the Members by a Super Majority Approval, and required if so instructed by the Members by a Super Majority Approval, to take the following actions or inactions at the Company\u2019s cost: (i) make any elections or decisions under the New Audit Rules, including without limitation, with respect to any IRS examination of the Company commenced under Section 6231(a) of the Code, (ii) conduct or make any decision to initiate any administrative or judicial proceedings involving the Company under the New Audit Rules, (iii) make a request for administrative adjustment with respect to the Company under Section 6227 of the Code, (iv) file a petition for readjustment under Section 6234 of the Code (including choice of judicial forum) with respect to an FPAA, (v) appeal an adverse judicial decision, (vi) make any decision regarding the compromise, settlement or dismissal of any such proceedings and (vii) any such other actions or inactions which are similar to or otherwise described in Paragraph 21 of this Agreement.\n21.5 With respect to any audit of the Company, the Company Representative shall cause the Company to make a timely election under Section 6226(a)(l) of the Code (a \u201cPush-Out Election\u201d) with respect to any imputed underpayment for the reviewed year or years. After such Push-Out Election is made, the Company shall timely furnish to the IRS and each person that was a Member of the Company during the reviewed year to which such underpayment relates a statement (the \u201cSection 6226 Statement\u201d) of such Member\u2019s share of any adjustment to income, gain, loss, deduction or credit for the reviewed year, as determined in the FPAA. To the extent the Members\u2019 respective shares of such adjustments are not determined in the FPAA, the Manager shall determine such shares based on the allocations described in this Agreement for the reviewed year, which determination shall be made in the reasonable discretion of the Manager. Each Member receiving a Section 6226 Statement with respect to a reviewed year shall timely report and pay such Member\u2019s tax liability imposed by the Code for the Member\u2019s taxable year that includes the date on which the Section 6226 Statement was furnished to the Member, which tax liability shall include the \u201cadjustment amounts\u201d described in Section 6226(b)(2) of the Code, including interest determined in the manner and at the underpayment rate specified in Section 6226(c)(2) of the Code and any applicable penalties and additions to tax (which are determined at the Company level under Sections 6221(a) and 6226(c)(l) of the Code but imposed on the Members). Each such Company shall timely provide to the Company such evidence as the Manager shall reasonably require to establish the Member\u2019s compliance with the requirements of Section 6226 of the Code.\n21.6 If for any reason the Company is liable for any tax, imputed underpayment, interest or penalty as a result of any audit under the New Audit Rules (collectively, \u201cPartnership Audit Payments\u201d), then:\n(i) Each person who was a Member during any portion of the reviewed year (including, without limitation, former Members) shall indemnify and pay the Company an amount equal to such Person\u2019s proportionate share of such liability, based on the amount each such Person should have borne (computed at the tax rate used to compute Company\u2019s liability) had the Company\u2019s tax return for such taxable year reflected the audit adjustment, and the expense for the Company\u2019s payment of such Partnership Audit Payments shall be specially allocated to such Persons (or their successors) in such proportions. Notwithstanding the foregoing, such apportionment of liability shall also take into account the extent to which the Company\u2019s imputed underpayment was modified by adjustments under Section 6225(c) of the Code (to the extent approved by the IRS) and attributable to (A) a particular Member\u2019s tax classification, tax rates, tax attributes, the character of tax items to which the adjustment relates, and similar factors, or (B) the Member\u2019s filing of an amended return for the Member\u2019s taxable year that includes the end of the Company\u2019s reviewed year and payment of required tax liability in a manner that complies with Section 6225(c)(2) of the Code. To the extent an imputed underpayment results from the reallocation of the distributive share of any Company tax item from one Member to another, the Member(s) whose shares of any item of income or gain are increased, or whose shares of any item of loss, deduction or credit are decreased, shall be treated as bearing the economic burden of such imputed underpayment.\n(ii) The Manager shall, in consultation with the Accountants, determine a tentative apportionment of the Partnership Audit Payments among the Member and former Member and shall notify such Persons as soon as reasonably practicable of its determination and the facts and analysis supporting such determination. Each such Member or former Member shall have 30 days to object to such apportionment and propose an alternative basis of apportionment or adjustment thereto and the basis therefor. The Manager shall then determine a final apportionment in its reasonable discretion and shall, as soon as reasonably practicable thereafter, deliver a Notice to all applicable Persons of such determination after which each such Person shall remit any amounts due to the Company within 15 days thereafter.\n(iii) The Company, at the direction of the Manager, shall apply any distributions, fees or other amounts payable under this Agreement to any Member or any Affiliate of such Member to offset any payments due to the Company from such Member pursuant to this Paragraph 21.6.\n21.7 The provisions of this Paragraph 21 shall survive the termination or dissolution of the Company or the termination of any Member\u2019s interest in the Company and shall remain binding on the Members for as long of a period of time as is necessary to resolve with any taxing authorities any and all matters regarding the United States federal income tax matters of the Company, its Member or former Members.\n21.8 The Members hereby Consent to any amendments to this Paragraph 21 that the Manager determines are reasonably necessary and appropriate to address additional guidance provided in Treasury Regulations or other IRS guidance relating to the New Audit Rules, or to take into account subsequently enacted amendments to the New Audit Rules.", "size": 2, "samples": [{"hash": "1r6meI6u8lv", "uri": "/contracts/1r6meI6u8lv#partnership-audit-rules", "label": "Limited Liability Company Agreement (Phoenix Capital Group Holdings, LLC)", "score": 35.3627652293, "published": true}, {"hash": "jnfLUWVpV5R", "uri": "/contracts/jnfLUWVpV5R#partnership-audit-rules", "label": "Limited Liability Company Agreement (Phoenix Capital Group Holdings, LLC)", "score": 34.6783027649, "published": true}], "snippet_links": [{"key": "section-1101", "type": "clause", "offset": [34, 46]}, {"key": "bipartisan-budget-act-of-2015", "type": "definition", "offset": [54, 83]}, {"key": "existing-partnership", "type": "definition", "offset": [124, 144]}, {"key": "the-code", "type": "clause", "offset": [190, 198]}, {"key": "new-partnership", "type": "definition", "offset": [224, 239]}, {"key": "collection-system", "type": "clause", "offset": [254, 271]}, {"key": "certain-exceptions", "type": "clause", "offset": [289, 307]}, {"key": "liability-for", "type": "clause", "offset": [321, 334]}, {"key": "additions-to-tax", "type": "definition", "offset": [377, 393]}, {"key": "distributive-share", "type": "definition", "offset": [514, 532]}, {"key": "references-in", "type": "clause", "offset": [594, 607]}, {"key": "paragraph-21", "type": "clause", "offset": [613, 625]}, {"key": "partnership-audit-provisions", "type": "definition", "offset": [637, 665]}, {"key": "as-amended", "type": "definition", "offset": [708, 718]}, {"key": "in-effect", "type": "definition", "offset": [750, 759]}, {"key": "relevant-company", "type": "definition", "offset": [768, 784]}, {"key": "taxable-year", "type": "definition", "offset": [785, 797]}, {"key": "applicable-treasury-regulations", "type": "definition", "offset": [830, 861]}, {"key": "irs-guidance", "type": "definition", "offset": [872, 884]}, {"key": "new-audit-rules", "type": "clause", "offset": [917, 932]}, {"key": "reviewed-year", "type": "definition", "offset": [961, 974]}, {"key": "adjustment-year", "type": "definition", "offset": [1065, 1080]}, {"key": "request-for-administrative-adjustment", "type": "clause", "offset": [1262, 1299]}, {"key": "by-the-company", "type": "clause", "offset": [1308, 1322]}, {"key": "other-case", "type": "clause", "offset": [1371, 1381]}, {"key": "a-notice", "type": "clause", "offset": [1392, 1400]}, {"key": "partnership-adjustment", "type": "definition", "offset": [1410, 1432]}, {"key": "directed-to", "type": "definition", "offset": [1487, 1498]}, {"key": "the-company-shall", "type": "clause", "offset": [1525, 1542]}, {"key": "general-effective-date", "type": "clause", "offset": [1700, 1722]}, {"key": "partnership-representative", "type": "clause", "offset": [1781, 1807]}, {"key": "the-manager", "type": "clause", "offset": [1871, 1882]}, {"key": "approval-of", "type": "definition", "offset": [1892, 1903]}, {"key": "from-time-to-time", "type": "clause", "offset": [1919, 1936]}, {"key": "designated-individual", "type": "definition", "offset": [1950, 1971]}, {"key": "the-applicable", "type": "clause", "offset": [1988, 2002]}, {"key": "to-act", "type": "definition", "offset": [2025, 2031]}, {"key": "the-company-representative", "type": "clause", "offset": [2035, 2061]}, {"key": "the-provisions-of-this", "type": "clause", "offset": [2147, 2169]}, {"key": "powers-and-authority", "type": "clause", "offset": [2233, 2253]}, {"key": "to-the-members", "type": "clause", "offset": [2386, 2400]}, {"key": "notice-of-any", "type": "clause", "offset": [2408, 2421]}, {"key": "communication-to", "type": "clause", "offset": [2422, 2438]}, {"key": "tax-authority", "type": "definition", "offset": [2497, 2510]}, {"key": "tax-return-or", "type": "definition", "offset": [2533, 2546]}, {"key": "other-company", "type": "clause", "offset": [2547, 2560]}, {"key": "summary-of-the", "type": "clause", "offset": [2585, 2599]}, {"key": "consent-of-the-members", "type": "definition", "offset": [2747, 2769]}, {"key": "super-majority-approval", "type": "definition", "offset": [2775, 2798]}, {"key": "by-the-members", "type": "clause", "offset": [2830, 2844]}, {"key": "actions-or-inactions", "type": "clause", "offset": [2897, 2917]}, {"key": "including-without-limitation", "type": "clause", "offset": [3004, 3032]}, {"key": "judicial-proceedings", "type": "clause", "offset": [3198, 3218]}, {"key": "with-respect-to-the-company", "type": "clause", "offset": [3319, 3346]}, {"key": "judicial-forum", "type": "clause", "offset": [3469, 3483]}, {"key": "with-respect-to-an", "type": "clause", "offset": [3485, 3503]}, {"key": "judicial-decision", "type": "definition", "offset": [3532, 3549]}, {"key": "other-actions", "type": "clause", "offset": [3667, 3680]}, {"key": "similar-to", "type": "definition", "offset": [3704, 3714]}, {"key": "audit-of-the-company", "type": "clause", "offset": [3798, 3818]}, {"key": "election-under", "type": "clause", "offset": [3888, 3902]}, {"key": "imputed-underpayment", "type": "definition", "offset": [3978, 3998]}, {"key": "furnish-to", "type": "clause", "offset": [4094, 4104]}, {"key": "each-person", "type": "clause", "offset": [4117, 4128]}, {"key": "member-of-the-company", "type": "definition", "offset": [4140, 4161]}, {"key": "adjustment-to-income", "type": "clause", "offset": [4295, 4315]}, {"key": "to-the-extent", "type": "clause", "offset": [4399, 4412]}, {"key": "shares-of", "type": "clause", "offset": [4437, 4446]}, {"key": "not-determined", "type": "definition", "offset": [4468, 4482]}, {"key": "based-on", "type": "definition", "offset": [4536, 4544]}, {"key": "agreement-for", "type": "clause", "offset": [4579, 4592]}, {"key": "reasonable-discretion", "type": "definition", "offset": [4653, 4674]}, {"key": "each-member", "type": "definition", "offset": [4691, 4702]}, {"key": "timely-report", "type": "clause", "offset": [4776, 4789]}, {"key": "tax-liability", "type": "definition", "offset": [4812, 4825]}, {"key": "adjustment-amounts", "type": "clause", "offset": [5003, 5021]}, {"key": "underpayment-rate", "type": "definition", "offset": [5123, 5140]}, {"key": "to-establish", "type": "definition", "offset": [5465, 5477]}, {"key": "the-requirements", "type": "clause", "offset": [5507, 5523]}, {"key": "for-any-reason", "type": "clause", "offset": [5561, 5575]}, {"key": "audit-payments", "type": "clause", "offset": [5732, 5746]}, {"key": "former-members", "type": "definition", "offset": [5861, 5875]}, {"key": "equal-to", "type": "definition", "offset": [5923, 5931]}, {"key": "proportionate-share", "type": "clause", "offset": [5946, 5965]}, {"key": "audit-adjustment", "type": "clause", "offset": [6168, 6184]}, {"key": "for-the-company", "type": "clause", "offset": [6202, 6217]}, {"key": "payment-of", "type": "clause", "offset": [6220, 6230]}, {"key": "payments-shall-be", "type": "clause", "offset": [6254, 6271]}, {"key": "allocated-to", "type": "definition", "offset": [6282, 6294]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [6351, 6380]}, {"key": "apportionment-of-liability", "type": "clause", "offset": [6387, 6413]}, {"key": "take-into-account", "type": "definition", "offset": [6425, 6442]}, {"key": "approved-by", "type": "definition", "offset": [6575, 6586]}, {"key": "tax-classification", "type": "clause", "offset": [6642, 6660]}, {"key": "tax-rates", "type": "clause", "offset": [6662, 6671]}, {"key": "tax-attributes", "type": "clause", "offset": [6673, 6687]}, {"key": "tax-items", "type": "definition", "offset": [6706, 6715]}, {"key": "the-adjustment", "type": "clause", "offset": [6725, 6739]}, {"key": "reallocation-of", "type": "clause", "offset": [7057, 7072]}, {"key": "income-or-gain", "type": "clause", "offset": [7190, 7204]}, {"key": "in-consultation-with", "type": "definition", "offset": [7394, 7414]}, {"key": "the-accountants", "type": "clause", "offset": [7415, 7430]}, {"key": "the-facts", "type": "clause", "offset": [7626, 7635]}, {"key": "such-determination", "type": "definition", "offset": [7660, 7678]}, {"key": "basis-of", "type": "clause", "offset": [7792, 7800]}, {"key": "the-basis", "type": "clause", "offset": [7841, 7850]}, {"key": "final-apportionment", "type": "definition", "offset": [7896, 7915]}, {"key": "notice-to", "type": "definition", "offset": [8012, 8021]}, {"key": "applicable-persons", "type": "definition", "offset": [8026, 8044]}, {"key": "amounts-due", "type": "definition", "offset": [8112, 8123]}, {"key": "agreement-to", "type": "clause", "offset": [8290, 8302]}, {"key": "affiliate-of", "type": "definition", "offset": [8321, 8333]}, {"key": "payments-due", "type": "clause", "offset": [8360, 8372]}, {"key": "pursuant-to", "type": "clause", "offset": [8405, 8416]}, {"key": "termination-or-dissolution-of-the-company", "type": "clause", "offset": [8497, 8538]}, {"key": "termination-of", "type": "definition", "offset": [8546, 8560]}, {"key": "interest-in-the-company", "type": "definition", "offset": [8574, 8597]}, {"key": "period-of-time", "type": "clause", "offset": [8655, 8669]}, {"key": "taxing-authorities", "type": "definition", "offset": [8706, 8724]}, {"key": "matters-regarding", "type": "clause", "offset": [8737, 8754]}, {"key": "federal-income-tax-matters", "type": "clause", "offset": [8773, 8799]}, {"key": "consent-to", "type": "definition", "offset": [8870, 8880]}, {"key": "amendments-to-this", "type": "clause", "offset": [8885, 8903]}, {"key": "necessary-and-appropriate", "type": "definition", "offset": [8960, 8985]}, {"key": "additional-guidance", "type": "clause", "offset": [8997, 9016]}, {"key": "relating-to", "type": "definition", "offset": [9072, 9083]}, {"key": "amendments-to-the", "type": "clause", "offset": [9150, 9167]}], "hash": "5749f51383570d4ecc424de3cf90033a", "id": 3}, {"snippet": "Under current tax law, subject to certain exceptions, any audit adjustment to items of income, gain, loss, deduction, or credit of a partnership (and any partner\u2019s distributive share thereof) is determined, and taxes, interest, or penalties attributable thereto are assessed and collected, at the partnership level. It is possible that these rules could result in partnerships in which we directly or indirectly invest, including our Operating Partnership, being required to pay additional taxes, interest and penalties as a result of an audit adjustment, and we, as a direct or indirect partner of these partnerships, could be required to bear the economic burden of those taxes, interest, and penalties even though we, as a REIT, may not otherwise have been required to pay additional corporate-level taxes as a result of the related audit adjustment. Investors are urged to consult their tax advisors with respect to these changes and their potential impact on their investment in our capital stock. The following discussion is a summary of the material U.S. federal income tax consequences to you of purchasing, owning and disposing of our capital stock or our Operating Partnership\u2019s debt securities. This discussion is limited to holders who hold our capital stock or our Operating Partnership\u2019s debt securities as \u201ccapital assets\u201d within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a holder\u2019s particular circumstances, including the alternative minimum tax. In addition, except where specifically noted, it does not address consequences relevant to holders subject to special rules, including, without limitation: \u2022 U.S. expatriates and former citizens or long-term residents of the United States; \u2022 U.S. holders (as defined below) whose functional currency is not the U.S. dollar; \u2022 persons holding our capital stock or our Operating Partnership\u2019s debt securities as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment; \u2022 banks, insurance companies, and other financial institutions; \u2022 REITs or regulated investment companies; \u2022 brokers, dealers or traders in securities; \u2022 \u201ccontrolled foreign corporations,\u201d \u201cpassive foreign investment companies,\u201d and corporations that accumulate earnings to avoid U.S. federal income tax; \u2022 S corporations, partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein); \u2022 tax-exempt organizations or governmental organizations; \u2022 persons subject to special tax accounting rules as a result of any item of gross income with respect to our capital stock or our Operating Partnership\u2019s debt securities being taken into account in an applicable financial statement; \u2022 persons deemed to sell our capital stock or our Operating Partnership\u2019s debt securities under the constructive sale provisions of the Code; \u2022 tax-qualified retirement plans; and \u2022 persons who hold or receive our capital stock pursuant to the exercise of any employee stock option or otherwise as compensation. For purposes of this discussion, a \u201cU.S. holder\u201d is a beneficial owner of our capital stock or our Operating Partnership\u2019s debt securities that, for U.S. federal income tax purposes, is or is treated as: \u2022 an individual who is a citizen or resident of the United States; \u2022 a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia; \u2022 an estate, the income of which is subject to U.S. federal income tax regardless of its source; or \u2022 a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more \u201cUnited States persons\u201d (within the meaning of Section 7701(a)(30) of the Code) or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. For purposes of this discussion, a \u201cnon-U.S. holder\u201d is any beneficial owner of our capital stock or our Operating Partnership\u2019s debt securities that is neither a U.S. holder nor an entity treated as a partnership for U.S. federal income tax purposes. If an entity treated as a partnership for U.S. federal income tax purposes holds our capital stock or our Operating Partnership\u2019s debt securities, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our capital stock or our Operating Partnership\u2019s debt securities and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them. To the extent that we make distributions on our capital stock in excess of our current and accumulated earnings and profits allocable to such stock, these distributions will be treated first as a tax-free return of capital to a \u2587.\u2587. \u2587\u2587\u2587\u2587\u2587\u2587 to the extent of the U.S. holder\u2019s adjusted tax basis in such shares of stock. This treatment will reduce the U.S. holder\u2019s adjusted tax basis in such shares of stock by such amount, but not below zero. Distributions in excess of our current and accumulated earnings and profits and in excess of a U.S. holder\u2019s adjusted tax basis in its shares will be taxable as capital gain. Such gain will be taxable as long-term capital gain if the shares have been held for more than one year. Dividends we declare in October, November, or December of any year and which are payable to a holder of record on a specified date in any of these months will be treated as both paid by us and received by the holder on December 31 of that year, provided we actually pay the dividend on or before January 31 of the following year. U.S. holders may not include in their own income tax returns any of our net operating losses or capital losses. U.S. holders that receive taxable stock distributions, including distributions partially payable in our capital stock and partially payable in cash, would be required to include the full amount of the distribution (i.e., the cash and the stock portion) as a dividend (subject to limited exceptions) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes, as described above. The amount of any distribution payable in our capital stock generally is equal to the amount of cash that could have been received instead of the capital stock. Depending on the circumstances of a U.S. holder, the tax on the distribution may exceed the amount of the distribution received in cash, in which case such U.S. holder would have to pay the tax using cash from other sources. If a U.S. holder sells the capital stock it received in connection with a taxable stock distribution in order to pay this tax and the proceeds of such sale are less than the amount required to be included in income with respect to the stock portion of the distribution, such U.S. holder could have a capital loss with respect to the stock sale that could not be used to offset such income. A U.S. holder that receives capital stock pursuant to such distribution generally has a tax basis in such capital stock equal to the amount of cash that could have been received instead of such capital stock as described above, and has a holding period in such capital stock that begins on the day immediately following the payment date for the distribution.", "size": 1, "samples": [{"hash": "6VOSXFgLU7h", "uri": "/contracts/6VOSXFgLU7h#partnership-audit-rules", "label": "Sales Agreement", "score": 35.9827651978, "published": true}], "snippet_links": [{"key": "tax-law", "type": "definition", "offset": [14, 21]}, {"key": "certain-exceptions", "type": "clause", "offset": [34, 52]}, {"key": "adjustment-to", "type": "clause", "offset": [64, 77]}, {"key": "distributive-share", "type": "definition", "offset": [164, 182]}, {"key": "these-rules", "type": "definition", "offset": [336, 347]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [389, 411]}, {"key": "operating-partnership", "type": "definition", "offset": [434, 455]}, {"key": "to-pay", "type": "clause", "offset": [472, 478]}, {"key": "additional-taxes", "type": "definition", "offset": [479, 495]}, {"key": "interest-and-penalties", "type": "clause", "offset": [497, 519]}, {"key": "result-of-an-audit", "type": "definition", "offset": [525, 543]}, {"key": "indirect-partner", "type": "definition", "offset": [579, 595]}, {"key": "to-consult", "type": "definition", "offset": [874, 884]}, {"key": "tax-advisors", "type": "clause", "offset": [891, 903]}, {"key": "with-respect-to", "type": "clause", "offset": [904, 919]}, {"key": "potential-impact", "type": "clause", "offset": [944, 960]}, {"key": "material-us", "type": "clause", "offset": [1048, 1060]}, {"key": "federal-income-tax-consequences", "type": "clause", "offset": [1062, 1093]}, {"key": "debt-securities", "type": "clause", "offset": [1189, 1204]}, {"key": "to-holders", "type": "clause", "offset": [1233, 1243]}, {"key": "capital-assets", "type": "definition", "offset": [1322, 1336]}, {"key": "meaning-of", "type": "clause", "offset": [1349, 1359]}, {"key": "the-code", "type": "clause", "offset": [1376, 1384]}, {"key": "a-holder", "type": "definition", "offset": [1514, 1522]}, {"key": "alternative-minimum-tax", "type": "definition", "offset": [1565, 1588]}, {"key": "in-addition", "type": "clause", "offset": [1590, 1601]}, {"key": "special-rules", "type": "clause", "offset": [1700, 1713]}, {"key": "without-limitation", "type": "clause", "offset": [1726, 1744]}, {"key": "residents-of-the-united-states", "type": "clause", "offset": [1798, 1828]}, {"key": "functional-currency", "type": "definition", "offset": [1870, 1889]}, {"key": "the-us", "type": "clause", "offset": [1897, 1904]}, {"key": "persons-holding", "type": "clause", "offset": [1916, 1931]}, {"key": "risk-reduction", "type": "definition", "offset": [2035, 2049]}, {"key": "conversion-transaction", "type": "clause", "offset": [2075, 2097]}, {"key": "insurance-companies", "type": "definition", "offset": [2139, 2158]}, {"key": "other-financial-institutions", "type": "definition", "offset": [2164, 2192]}, {"key": "investment-companies", "type": "definition", "offset": [2215, 2235]}, {"key": "controlled-foreign-corporations", "type": "clause", "offset": [2285, 2316]}, {"key": "passive-foreign-investment", "type": "clause", "offset": [2320, 2346]}, {"key": "s-corporations", "type": "definition", "offset": [2437, 2451]}, {"key": "other-entities", "type": "clause", "offset": [2469, 2483]}, {"key": "for-us", "type": "clause", "offset": [2524, 2531]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [2533, 2560]}, {"key": "accounting-rules", "type": "clause", "offset": [2677, 2693]}, {"key": "gross-income", "type": "definition", "offset": [2721, 2733]}, {"key": "financial-statement", "type": "definition", "offset": [2857, 2876]}, {"key": "persons-deemed", "type": "clause", "offset": [2880, 2894]}, {"key": "to-sell", "type": "clause", "offset": [2895, 2902]}, {"key": "provisions-of-the", "type": "clause", "offset": [2996, 3013]}, {"key": "qualified-retirement-plans", "type": "clause", "offset": [3026, 3052]}, {"key": "pursuant-to-the", "type": "clause", "offset": [3106, 3121]}, {"key": "exercise-of", "type": "clause", "offset": [3122, 3133]}, {"key": "employee-stock-option", "type": "definition", "offset": [3138, 3159]}, {"key": "for-purposes-of-this", "type": "clause", "offset": [3190, 3210]}, {"key": "beneficial-owner", "type": "definition", "offset": [3244, 3260]}, {"key": "an-individual", "type": "clause", "offset": [3396, 3409]}, {"key": "citizen-or-resident", "type": "definition", "offset": [3419, 3438]}, {"key": "a-corporation", "type": "clause", "offset": [3463, 3476]}, {"key": "laws-of-the-united-states", "type": "definition", "offset": [3508, 3533]}, {"key": "any-state", "type": "definition", "offset": [3535, 3544]}, {"key": "the-district-of-columbia", "type": "clause", "offset": [3557, 3581]}, {"key": "supervision-of", "type": "clause", "offset": [3728, 3742]}, {"key": "a-us", "type": "clause", "offset": [3743, 3748]}, {"key": "control-of", "type": "definition", "offset": [3764, 3774]}, {"key": "united-states-persons", "type": "clause", "offset": [3788, 3809]}, {"key": "valid-election", "type": "definition", "offset": [3880, 3894]}, {"key": "in-effect", "type": "definition", "offset": [3895, 3904]}, {"key": "treatment-of", "type": "definition", "offset": [4390, 4402]}, {"key": "status-of-the", "type": "clause", "offset": [4451, 4464]}, {"key": "activities-of-the-partnership", "type": "clause", "offset": [4478, 4507]}, {"key": "certain-determinations", "type": "clause", "offset": [4512, 4534]}, {"key": "partner-level", "type": "definition", "offset": [4547, 4560]}, {"key": "to-the-extent", "type": "clause", "offset": [4793, 4806]}, {"key": "earnings-and-profits", "type": "clause", "offset": [4896, 4916]}, {"key": "return-of-capital", "type": "definition", "offset": [4998, 5015]}, {"key": "a-\u2587", "type": "clause", "offset": [5019, 5022]}, {"key": "adjusted-tax-basis", "type": "definition", "offset": [5068, 5086]}, {"key": "shares-of-stock", "type": "definition", "offset": [5095, 5110]}, {"key": "capital-gain", "type": "definition", "offset": [5397, 5409]}, {"key": "the-shares", "type": "clause", "offset": [5466, 5476]}, {"key": "one-year", "type": "definition", "offset": [5506, 5514]}, {"key": "we-declare", "type": "clause", "offset": [5526, 5536]}, {"key": "payable-to", "type": "definition", "offset": [5597, 5607]}, {"key": "holder-of-record", "type": "definition", "offset": [5610, 5626]}, {"key": "specified-date", "type": "clause", "offset": [5632, 5646]}, {"key": "by-the-holder", "type": "clause", "offset": [5718, 5731]}, {"key": "on-december", "type": "clause", "offset": [5732, 5743]}, {"key": "the-dividend", "type": "clause", "offset": [5786, 5798]}, {"key": "following-year", "type": "clause", "offset": [5830, 5844]}, {"key": "income-tax-returns", "type": "definition", "offset": [5888, 5906]}, {"key": "net-operating-losses", "type": "clause", "offset": [5918, 5938]}, {"key": "capital-losses", "type": "definition", "offset": [5942, 5956]}, {"key": "stock-distributions", "type": "clause", "offset": [5992, 6011]}, {"key": "the-distribution", "type": "clause", "offset": [6155, 6171]}, {"key": "stock-portion", "type": "definition", "offset": [6196, 6209]}, {"key": "limited-exceptions", "type": "clause", "offset": [6237, 6255]}, {"key": "stock-generally", "type": "clause", "offset": [6435, 6450]}, {"key": "equal-to", "type": "definition", "offset": [6454, 6462]}, {"key": "the-capital-stock", "type": "clause", "offset": [6523, 6540]}, {"key": "depending-on-the", "type": "clause", "offset": [6542, 6558]}, {"key": "other-sources", "type": "definition", "offset": [6752, 6765]}, {"key": "in-connection-with", "type": "clause", "offset": [6820, 6838]}, {"key": "in-order-to", "type": "clause", "offset": [6868, 6879]}, {"key": "amount-required", "type": "clause", "offset": [6941, 6956]}, {"key": "stock-sale", "type": "definition", "offset": [7100, 7110]}, {"key": "pursuant-to-such", "type": "clause", "offset": [7199, 7215]}, {"key": "distribution-generally", "type": "clause", "offset": [7216, 7238]}, {"key": "holding-period", "type": "clause", "offset": [7395, 7409]}, {"key": "the-day", "type": "definition", "offset": [7447, 7454]}, {"key": "payment-date", "type": "clause", "offset": [7481, 7493]}], "hash": "a77567eec101fcc05b4e155ca4fff658", "id": 9}, {"snippet": "The Bipartisan Budget Act of 2015 changed the rules applicable to U.S. federal income tax audits of partnerships. Under the new rules (which are generally effective for taxable years beginning after December 31, 2017), among other changes and subject to certain exceptions, any audit adjustment to items of income, gain, loss, deduction, or credit of a partnership (and any partner\u2019s distributive share thereof) is determined, and taxes, interest, or penalties attributable thereto are assessed and collected, at the partnership level. It is possible that these rules could result in partnerships in which we directly or indirectly invest, including our operating partnership, being required to pay additional taxes, interest and penalties as a result of an audit adjustment, and we, as a direct or indirect partner of these partnerships, could be required to bear the economic burden of those taxes, interest, and penalties even though we, as a REIT, may not otherwise have been required to pay additional corporate-level taxes as a result of the related audit adjustment. Investors are urged to consult their tax advisors with respect to these changes and their potential impact on their investment in our capital stock. The following discussion is a summary of the material U.S. federal income tax consequences to you of purchasing, owning and disposing of our capital stock or debt securities. This discussion is limited to holders who hold our capital stock or debt securities as \u201ccapital assets\u201d within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a holder\u2019s particular circumstances, including the alternative minimum tax. In addition, except where specifically noted, it does not address consequences relevant to holders subject to special rules, including, without limitation: \u2022 U.S. expatriates and former citizens or long-term residents of the United States; \u2022 U.S. holders (as defined below) whose functional currency is not the U.S. dollar; \u2022 persons holding our capital stock or debt securities as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment; \u2022 banks, insurance companies, and other financial institutions; \u2022 REITs or regulated investment companies; \u2022 brokers, dealers or traders in securities; \u2022 \u201ccontrolled foreign corporations,\u201d \u201cpassive foreign investment companies,\u201d and corporations that accumulate earnings to avoid U.S. federal income tax; \u2022 S corporations, partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein); \u2022 tax-exempt organizations (except to the extent discussed in \u201c\u2014Taxation of Tax-Exempt Holders of Our Capital Stock\u201d below) or governmental organizations; \u2022 persons subject to special tax accounting rules as a result of any item of gross income with respect to our capital stock or debt securities being taken into account in an applicable financial statement; \u2022 persons deemed to sell our capital stock or debt securities under the constructive sale provisions of the Code; and \u2022 persons who hold or receive our capital stock pursuant to the exercise of any employee stock option or otherwise as compensation. For purposes of this discussion, a \u201cU.S. holder\u201d is a beneficial owner of our capital stock or debt securities that, for U.S. federal income tax purposes, is or is treated as: \u2022 an individual who is a citizen or resident of the United States; \u2022 a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia; \u2022 an estate, the income of which is subject to U.S. federal income tax regardless of its source; or \u2022 a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more \u201cUnited States persons\u201d (within the meaning of Section 7701(a)(30) of the Code) or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. For purposes of this discussion, a \u201cnon-U.S. holder\u201d is any beneficial owner of our capital stock or debt securities that is neither a U.S. holder nor an entity treated as a partnership for U.S. federal income tax purposes. If an entity treated as a partnership for U.S. federal income tax purposes holds our capital stock or debt securities, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our capital stock or debt securities and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.", "size": 1, "samples": [{"hash": "hp4g83XBXFu", "uri": "/contracts/hp4g83XBXFu#partnership-audit-rules", "label": "Equity Distribution Agreement", "score": 33.6488800049, "published": true}], "snippet_links": [{"key": "bipartisan-budget-act-of-2015", "type": "definition", "offset": [4, 33]}, {"key": "the-rules", "type": "clause", "offset": [42, 51]}, {"key": "applicable-to-us", "type": "clause", "offset": [52, 69]}, {"key": "tax-audits", "type": "definition", "offset": [86, 96]}, {"key": "new-rules", "type": "definition", "offset": [124, 133]}, {"key": "after-december", "type": "clause", "offset": [193, 207]}, {"key": "other-changes", "type": "clause", "offset": [225, 238]}, {"key": "certain-exceptions", "type": "clause", "offset": [254, 272]}, {"key": "adjustment-to", "type": "clause", "offset": [284, 297]}, {"key": "distributive-share", "type": "definition", "offset": [384, 402]}, {"key": "these-rules", "type": "definition", "offset": [556, 567]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [609, 631]}, {"key": "operating-partnership", "type": "definition", "offset": [654, 675]}, {"key": "to-pay", "type": "clause", "offset": [692, 698]}, {"key": "additional-taxes", "type": "definition", "offset": [699, 715]}, {"key": "interest-and-penalties", "type": "clause", "offset": [717, 739]}, {"key": "result-of-an-audit", "type": "definition", "offset": [745, 763]}, {"key": "indirect-partner", "type": "definition", "offset": [799, 815]}, {"key": "to-consult", "type": "definition", "offset": [1094, 1104]}, {"key": "tax-advisors", "type": "clause", "offset": [1111, 1123]}, {"key": "with-respect-to", "type": "clause", "offset": [1124, 1139]}, {"key": "potential-impact", "type": "clause", "offset": [1164, 1180]}, {"key": "capital-stock", "type": "definition", "offset": [1208, 1221]}, {"key": "material-us", "type": "clause", "offset": [1268, 1280]}, {"key": "federal-income-tax-consequences", "type": "clause", "offset": [1282, 1313]}, {"key": "debt-securities", "type": "clause", "offset": [1381, 1396]}, {"key": "to-holders", "type": "clause", "offset": [1425, 1435]}, {"key": "capital-assets", "type": "definition", "offset": [1486, 1500]}, {"key": "meaning-of", "type": "clause", "offset": [1513, 1523]}, {"key": "the-code", "type": "clause", "offset": [1540, 1548]}, {"key": "a-holder", "type": "definition", "offset": [1678, 1686]}, {"key": "alternative-minimum-tax", "type": "definition", "offset": [1729, 1752]}, {"key": "in-addition", "type": "clause", "offset": [1754, 1765]}, {"key": "special-rules", "type": "clause", "offset": [1864, 1877]}, {"key": "without-limitation", "type": "clause", "offset": [1890, 1908]}, {"key": "residents-of-the-united-states", "type": "clause", "offset": [1962, 1992]}, {"key": "functional-currency", "type": "definition", "offset": [2034, 2053]}, {"key": "the-us", "type": "clause", "offset": [2061, 2068]}, {"key": "persons-holding", "type": "clause", "offset": [2080, 2095]}, {"key": "risk-reduction", "type": "definition", "offset": [2171, 2185]}, {"key": "conversion-transaction", "type": "clause", "offset": [2211, 2233]}, {"key": "insurance-companies", "type": "definition", "offset": [2275, 2294]}, {"key": "other-financial-institutions", "type": "definition", "offset": [2300, 2328]}, {"key": "investment-companies", "type": "definition", "offset": [2351, 2371]}, {"key": "controlled-foreign-corporations", "type": "clause", "offset": [2421, 2452]}, {"key": "passive-foreign-investment", "type": "clause", "offset": [2456, 2482]}, {"key": "s-corporations", "type": "definition", "offset": [2573, 2587]}, {"key": "other-entities", "type": "clause", "offset": [2605, 2619]}, {"key": "for-us", "type": "clause", "offset": [2660, 2667]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [2669, 2696]}, {"key": "except-to-the-extent", "type": "clause", "offset": [2750, 2770]}, {"key": "holders-of", "type": "clause", "offset": [2809, 2819]}, {"key": "accounting-rules", "type": "clause", "offset": [2910, 2926]}, {"key": "gross-income", "type": "definition", "offset": [2954, 2966]}, {"key": "financial-statement", "type": "definition", "offset": [3062, 3081]}, {"key": "persons-deemed", "type": "clause", "offset": [3085, 3099]}, {"key": "to-sell", "type": "clause", "offset": [3100, 3107]}, {"key": "provisions-of-the", "type": "clause", "offset": [3173, 3190]}, {"key": "pursuant-to-the", "type": "clause", "offset": [3249, 3264]}, {"key": "exercise-of", "type": "clause", "offset": [3265, 3276]}, {"key": "employee-stock-option", "type": "definition", "offset": [3281, 3302]}, {"key": "for-purposes-of-this", "type": "clause", "offset": [3333, 3353]}, {"key": "beneficial-owner", "type": "definition", "offset": [3387, 3403]}, {"key": "an-individual", "type": "clause", "offset": [3511, 3524]}, {"key": "citizen-or-resident", "type": "definition", "offset": [3534, 3553]}, {"key": "a-corporation", "type": "clause", "offset": [3578, 3591]}, {"key": "laws-of-the-united-states", "type": "definition", "offset": [3623, 3648]}, {"key": "any-state", "type": "definition", "offset": [3650, 3659]}, {"key": "the-district-of-columbia", "type": "clause", "offset": [3672, 3696]}, {"key": "supervision-of", "type": "clause", "offset": [3843, 3857]}, {"key": "a-us", "type": "clause", "offset": [3858, 3863]}, {"key": "control-of", "type": "definition", "offset": [3879, 3889]}, {"key": "united-states-persons", "type": "clause", "offset": [3903, 3924]}, {"key": "valid-election", "type": "definition", "offset": [3995, 4009]}, {"key": "in-effect", "type": "definition", "offset": [4010, 4019]}, {"key": "treatment-of", "type": "definition", "offset": [4449, 4461]}, {"key": "status-of-the", "type": "clause", "offset": [4510, 4523]}, {"key": "activities-of-the-partnership", "type": "clause", "offset": [4537, 4566]}, {"key": "certain-determinations", "type": "clause", "offset": [4571, 4593]}, {"key": "partner-level", "type": "definition", "offset": [4606, 4619]}], "hash": "a42902f21a1c4f2bfb0b54ff144607f2", "id": 10}, {"snippet": "The Company has not (i) elected to apply the partnership audit rules included in Sections 6221 through 6241 of the Code (the \u201cPartnership Tax Audit Rules\u201d ) (or any corresponding or similar provision of applicable Law) to any taxable period ending on or prior to December 31, 2017 or (ii) filed, or agreed to file, any election under the provisions of the Partnership Tax Audit Rules (or any corresponding or similar provision of applicable Law) for any taxable period beginning on or after January 1, 2018.", "size": 1, "samples": [{"hash": "2bjH8rr3xzJ", "uri": "/contracts/2bjH8rr3xzJ#partnership-audit-rules", "label": "Membership Interest Purchase Agreement (Astec Industries Inc)", "score": 36.3319625854, "published": true}], "snippet_links": [{"key": "the-company-has", "type": "clause", "offset": [0, 15]}, {"key": "to-apply", "type": "clause", "offset": [32, 40]}, {"key": "the-partnership", "type": "definition", "offset": [41, 56]}, {"key": "the-code", "type": "clause", "offset": [111, 119]}, {"key": "partnership-tax-audit-rules", "type": "clause", "offset": [126, 153]}, {"key": "provision-of", "type": "clause", "offset": [190, 202]}, {"key": "applicable-law", "type": "clause", "offset": [203, 217]}, {"key": "period-ending", "type": "clause", "offset": [234, 247]}, {"key": "prior-to-december", "type": "clause", "offset": [254, 271]}, {"key": "to-file", "type": "definition", "offset": [306, 313]}, {"key": "election-under", "type": "clause", "offset": [319, 333]}, {"key": "the-provisions-of-the", "type": "clause", "offset": [334, 355]}, {"key": "beginning-on", "type": "clause", "offset": [469, 481]}, {"key": "after-january", "type": "clause", "offset": [485, 498]}], "hash": "38513aab5a1b02f524718872d4053e48", "id": 5}, {"snippet": "If, in any taxable year involving a taxable period (or portion thereof) prior to the Closing Date in which the Company or any Subsidiary does not elect out under Section 6221(b) of the Code, the IRS makes an adjustment to an item of income, gain, loss, deduction, or credit of the Company or such Subsidiary (or any partner\u2019s or member\u2019s distributive share thereof) that would result in an \u201cimputed underpayment\u201d within the meaning of Section 6225 of the Code (such imputed underpayment, together with any associated interest and penalties, an \u201cImputed Underpayment\u201d), the Company or its Subsidiaries, as the case may be, shall, if permitted under Section 6226 of the Code, timely and properly make the election to \u201cpush out\u201d any adjustments to the partners, such that the Company or such Subsidiary, as the case may be, shall not be liable for any Imputed Underpayment resulting from such adjustments.", "size": 1, "samples": [{"hash": "jde2R45UtD7", "uri": "/contracts/jde2R45UtD7#partnership-audit-rules", "label": "Purchase Agreement (Arcosa, Inc.)", "score": 28.1581115723, "published": true}], "snippet_links": [{"key": "taxable-year", "type": "definition", "offset": [11, 23]}, {"key": "taxable-period", "type": "definition", "offset": [36, 50]}, {"key": "prior-to-the-closing-date", "type": "clause", "offset": [72, 97]}, {"key": "the-code", "type": "clause", "offset": [181, 189]}, {"key": "adjustment-to", "type": "clause", "offset": [208, 221]}, {"key": "of-the-company", "type": "clause", "offset": [274, 288]}, {"key": "distributive-share", "type": "definition", "offset": [338, 356]}, {"key": "imputed-underpayment", "type": "definition", "offset": [391, 411]}, {"key": "meaning-of", "type": "clause", "offset": [424, 434]}, {"key": "interest-and-penalties", "type": "clause", "offset": [517, 539]}, {"key": "the-case", "type": "definition", "offset": [605, 613]}, {"key": "the-election", "type": "clause", "offset": [699, 711]}, {"key": "adjustments-to", "type": "clause", "offset": [730, 744]}, {"key": "the-partners", "type": "definition", "offset": [745, 757]}, {"key": "resulting-from", "type": "definition", "offset": [870, 884]}], "hash": "ffb343c4d00f1760614c0cdaa43c86b9", "id": 8}, {"snippet": "10.6.1 Cottonwood Residential shall be the \u201cpartnership representative\u201d for purposes of Code Sections 6223 and 6231, as amended by Section 1101 of the Bipartisan Budget Act of 2015, and shall, at the Company\u2019s expense, cause to be prepared and timely filed after the end of each taxable year of the Company all federal and state income tax returns required of the Company for such taxable year. If any state or local tax law provides for a partnership representative or Person having similar rights, powers, authority or obligations, Cottonwood Residential shall also serve in such capacity. The Company shall make such elections pursuant to the provisions of the Code as Cottonwood Residential, in its sole discretion, deems appropriate (including, in Cottonwood Residential\u2019s sole discretion, an election under Code Section 754 or an election to have the Company treated as an \u201celecting investment partnership\u201d for purposes of Code Section 743). 10.", "size": 1, "samples": [{"hash": "ksDpzyHCb8", "uri": "/contracts/ksDpzyHCb8#partnership-audit-rules", "label": "Limited Liability Company Agreement (Cottonwood Multifamily Reit Ii, Inc.)", "score": 28.0349082947, "published": true}], "snippet_links": [{"key": "partnership-representative", "type": "clause", "offset": [44, 70]}, {"key": "for-purposes-of", "type": "clause", "offset": [72, 87]}, {"key": "as-amended", "type": "definition", "offset": [117, 127]}, {"key": "section-1101", "type": "clause", "offset": [131, 143]}, {"key": "bipartisan-budget-act-of-2015", "type": "definition", "offset": [151, 180]}, {"key": "be-prepared", "type": "clause", "offset": [228, 239]}, {"key": "timely-filed", "type": "definition", "offset": [244, 256]}, {"key": "taxable-year", "type": "definition", "offset": [279, 291]}, {"key": "of-the-company", "type": "clause", "offset": [292, 306]}, {"key": "state-income-tax-returns", "type": "clause", "offset": [323, 347]}, {"key": "local-tax-law", "type": "definition", "offset": [411, 424]}, {"key": "the-company-shall", "type": "clause", "offset": [592, 609]}, {"key": "the-code", "type": "clause", "offset": [660, 668]}, {"key": "sole-discretion", "type": "definition", "offset": [703, 718]}, {"key": "election-under", "type": "clause", "offset": [798, 812]}, {"key": "section-754", "type": "clause", "offset": [818, 829]}, {"key": "investment-partnership", "type": "clause", "offset": [889, 911]}], "hash": "2cc0d65b06d4707b52d0196439848bcd", "id": 4}, {"snippet": "With respect to any taxable period ending on or prior to the Closing Date in which Sections 6221 through 6241 of the Code, as amended by the U.S. Bipartisan Budget Act of 2015, apply to Simon, and notwithstanding anything herein to the contrary, the applicable Sellers shall, if requested by the Buyer in its sole discretion, (i) cause Simon to make the election under Section 6226(a) of the Code with respect to the alternative to payment of imputed underpayment by Simon and (ii) take any other action such as filings, disclosures and notifications reasonably necessary to effectuate such election.", "size": 1, "samples": [{"hash": "7cZ4EAW5UAx", "uri": "/contracts/7cZ4EAW5UAx#partnership-audit-rules", "label": "Business Combination Agreement (KORE Group Holdings, Inc.)", "score": 33.1451072693, "published": true}], "snippet_links": [{"key": "with-respect-to", "type": "clause", "offset": [0, 15]}, {"key": "period-ending", "type": "clause", "offset": [28, 41]}, {"key": "prior-to-the-closing-date", "type": "clause", "offset": [48, 73]}, {"key": "the-code", "type": "clause", "offset": [113, 121]}, {"key": "as-amended", "type": "definition", "offset": [123, 133]}, {"key": "the-us", "type": "clause", "offset": [137, 144]}, {"key": "bipartisan-budget-act-of-2015", "type": "definition", "offset": [146, 175]}, {"key": "the-applicable", "type": "clause", "offset": [246, 260]}, {"key": "by-the-buyer", "type": "clause", "offset": [289, 301]}, {"key": "sole-discretion", "type": "definition", "offset": [309, 324]}, {"key": "election-under", "type": "clause", "offset": [354, 368]}, {"key": "payment-of", "type": "clause", "offset": [432, 442]}, {"key": "imputed-underpayment", "type": "definition", "offset": [443, 463]}, {"key": "other-action", "type": "definition", "offset": [491, 503]}, {"key": "reasonably-necessary", "type": "clause", "offset": [551, 571]}], "hash": "e24d24d11facb42b6c42ce83f3d136a3", "id": 6}, {"snippet": "In the event that any items related to this Agreement or the Tax Protection Agreement are subject to adjustment and/or assessment by the IRS under the provisions of Code Sections 6221-6241 (or by any tax authority under similar provisions), including without limitation and by way of example an assessment of an imputed underpayment by the IRS on the basis that a Unitholder Indemnity was not effective for federal income tax purposes to result in an allocation of Partnership liabilities to an Indemnitor for purposes of Code Section 752 at least equal to its Required Nonrecourse Debt Amount or Pro Rata Share (and for which the Indemnitor is \u201cat risk\u201d under Code Section 465) (and whether or not the Partnership makes a \u201cpush out\u201d or other election with respect to such imputed underpayment), the parties hereto shall reasonably cooperate as necessary to preserve the economic arrangement intended by the terms of this Agreement and the Tax Protection Agreement so that the Indemnitors or the Designated Summit OP Unitholders do not directly or indirectly bear any costs that are intended to be borne by the Partnership under the terms of this Agreement and the Tax Protection Agreement.", "size": 1, "samples": [{"hash": "1bC3DNlOUOi", "uri": "/contracts/1bC3DNlOUOi#partnership-audit-rules", "label": "Tax, Asset and Income Agreement (Camden Property Trust)", "score": 29.7091026306, "published": true}], "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [0, 12]}, {"key": "agreement-or", "type": "definition", "offset": [44, 56]}, {"key": "tax-protection-agreement", "type": "clause", "offset": [61, 85]}, {"key": "subject-to", "type": "definition", "offset": [90, 100]}, {"key": "the-provisions-of", "type": "clause", "offset": [147, 164]}, {"key": "tax-authority", "type": "definition", "offset": [200, 213]}, {"key": "similar-provisions", "type": "clause", "offset": [220, 238]}, {"key": "including-without-limitation", "type": "clause", "offset": [241, 269]}, {"key": "imputed-underpayment", "type": "definition", "offset": [312, 332]}, {"key": "the-basis", "type": "clause", "offset": [347, 356]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [407, 434]}, {"key": "allocation-of", "type": "clause", "offset": [451, 464]}, {"key": "partnership-liabilities", "type": "definition", "offset": [465, 488]}, {"key": "for-purposes-of", "type": "clause", "offset": [506, 521]}, {"key": "code-section", "type": "definition", "offset": [522, 534]}, {"key": "at-least-equal-to", "type": "definition", "offset": [539, 556]}, {"key": "debt-amount", "type": "definition", "offset": [582, 593]}, {"key": "pro-rata-share", "type": "definition", "offset": [597, 611]}, {"key": "at-risk", "type": "definition", "offset": [646, 653]}, {"key": "with-respect-to", "type": "clause", "offset": [752, 767]}, {"key": "the-parties-hereto", "type": "clause", "offset": [796, 814]}, {"key": "terms-of-this-agreement", "type": "clause", "offset": [908, 931]}, {"key": "the-designated", "type": "definition", "offset": [992, 1006]}, {"key": "op-unitholders", "type": "definition", "offset": [1014, 1028]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [1036, 1058]}, {"key": "by-the-partnership", "type": "clause", "offset": [1104, 1122]}], "hash": "69c96f4dbe88bedf769994c287529bc5", "id": 7}], "next_curs": "CmASWmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjwLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiBwYXJ0bmVyc2hpcC1hdWRpdC1ydWxlcyMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 32, "parents": [["books-records-accounting-and-reports", "Books Records Accounting and Reports"], ["tax-matters", "Tax Matters"], ["specific-performance", "Specific Performance"], ["apld-pipeline-loan", "APLD Pipeline Loan"], ["books-records-accounting-and-tax-elections", "Books Records Accounting and Tax Elections"]], "children": [["", ""], ["notices", "Notices"], ["successors-and-assigns", "Successors and Assigns"], ["severability", "Severability"], ["books-and-records", "Books and Records"]], "title": "Partnership Audit Rules", "id": "partnership-audit-rules", "related": [["office-of-management-and-budget-omb-audit-requirements", "OFFICE OF MANAGEMENT AND BUDGET (OMB) AUDIT REQUIREMENTS", "OFFICE OF MANAGEMENT AND BUDGET (OMB) AUDIT REQUIREMENTS"], ["health-safety-committee", "Health & Safety Committee", "Health & Safety Committee"], ["recognition-of-union-stewards-and-grievance-committee", "Recognition of Union Stewards and Grievance Committee", "Recognition of Union Stewards and Grievance Committee"], ["purpose-incorporation-by-reference-of-auction-procedures-and-settlement-procedures", "Purpose; Incorporation by Reference of Auction Procedures and Settlement Procedures", "Purpose; Incorporation by Reference of Auction Procedures and Settlement Procedures"], ["review-and-procedure-limitations", "Review and Procedure Limitations", "Review and Procedure Limitations"]], "related_snippets": [], "updated": "2026-02-25T05:25:33+00:00", "also_ask": ["How can the clause allocate audit liability among partners to minimize individual risk?", "What drafting elements are essential to ensure compliance with current IRS partnership audit procedures?", "What are the most common pitfalls in partnership audit clauses that could expose partners to unexpected tax liabilities?", "How do these audit rules compare to those in other jurisdictions or under prior law?", "What factors determine whether a court will enforce a partnership\u2019s chosen audit representative or pushback on its authority?"], "drafting_tip": "Specify audit procedures, allocate audit authority, and define notice requirements to ensure clarity, prevent disputes, and facilitate compliance with tax regulations.", "explanation": "The Partnership Audit Rules clause establishes the procedures and responsibilities for handling audits of the partnership by tax authorities. It typically designates a partnership representative to interact with tax authorities, outlines how audit adjustments are allocated among partners, and may specify how partners are notified and involved in the process. This clause ensures that the partnership can efficiently manage tax audits, clarifies the roles of partners during such events, and helps prevent disputes by providing a clear framework for responding to audit findings."}, "json": true, "cursor": ""}}