Large Partnerships Should Prepare Now for New IRS Enforcement
Tax attorneys Mary McNulty and Lee Meyercord published an article for Bloomberg Law on how large partnerships should prepare for a new IRS enforcement initiative. The IRS will send compliance letters to 500 partnerships with more than $10 million in assets and balance sheet discrepancies, potentially leading to audits. Furthermore, the agency is launching audits of 75 of the largest partnerships in the U.S., using artificial intelligence (AI) to identify compliance risks. This is in response to historically low audit rates for partnerships, but the authors explain that it will take time for the IRS to hire and train staff and assess the impact of these new enforcement efforts.
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