US partnerships keeping three sets of accounts
Triplicate books for US partnerships agreements
US companies that operate as partnership agreements, including
liability companies (LLCs), are keeping as many as three sets of accounts,
according to Grant Thornton.
Taxnews.com reported the firm as saying that such companies usually only
maintained two sets of books: those prepared on a
accounting principles (GAAP) basis and those prepared on a tax basis, but
were now also keeping a third set of accounts that reflect
704(b)’ capital accounts regulations relating to their partnership
‘Even though Section 704(b) books are not required to be shown on the
partnership’s tax return balance sheet, they need to be available as they
determine the economics of the deal,’ said Jerry Williford, a senior manager in
Grant Thornton’s US tax practice.