Tag Archives: partnership

How do I? Opt-in to the new partnership audit rules

The IRS has issued temporary regulations (T.D. 9780) that explain how a partnership can opt in to the new partnership audit regime that was enacted in the Bipartisan Budget Act of 2015 (BBA). As enacted, the new audit rules will apply to partnership returns filed for tax years beginning after...
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IRS Auditors Place More Focus On Partnerships As Use Of The Entity Increases

IRS officials, including Faris Fink, then Commissioner of the Small Business and Self-Employed Division, announced in 2013 that the IRS would increase its scrutiny of partnership entities. Indeed, the IRS’s audit statistics for 2014 have shown that Fink’s prediction was accurate. While the overall audit rate for all types of...
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Expect IRS Correspondence Audits of Small Business and Self-Employed to Expand into Multiple Year IRS Audits

The IRS itself is audited by the Treasury Inspector General for Tax Administration (TIGTA).  And in the most recent audit, TIGTA suggests that IRS Correspondence Audits should be expanded to  audit taxpayers for multiple years if it discovers that additional taxes are owed in one year.  WHAT TIGTA DID The...
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FAQ: How are LLCs taxed?

An LLC (limited liability company) is not a federal tax entity. LLCs are organized under state law. LLCs are not specifically mentioned in the Tax Code, and there are no special IRS regulations governing the taxation of LLCs comparable to the regulations for C corporations, S corporations, and partnerships. Instead,...
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