Ready or Not: IRS Partnership Audits Ramp Up

Tax attorney Lee Meyercord was quoted in a Private Funds CFO article discussing the IRS' initiative to audit partnerships with assets of more than $10 million. Ms. Meyercord explained that the effort, which has significantly increased partnership audits since the 2020 tax year, was facilitated by procedural changes from the 2015 Bipartisan Budget Act that made it simpler for the agency to target partnerships, alongside funding under the Inflation Reduction Act that allowed it to hire the personnel needed to boost enforcement. Despite anticipated shifts when Donald Trump assumes the presidency, professionals suggested that the focus on larger partnerships will continue. Ms. Meyercord provided advice for general partners (GPs) on compliance strategies to respond to the IRS' efforts.

READ: Ready or Not: IRS Partnership Audits Ramp Up (Subscription required)