A look at the new IRS centralized audit procedures for partnerships

Written on Dec 21, 2017

Partnerships offer flexibility and other benefits for corporations, but the complexity of partnership filings has increased over time.

“In response, the Department of the Treasury and IRS have changed the manner in which partnership tax filings are examined, required audit adjustments are made and tax due is collected,” writes Michael Bowman, CPA, in the November/December issue of CPA Voice.

He goes on to explain that prior to the Tax Equity and Fiscal Responsibility Act of 1982 and the electing partnership rules, when a partnership was selected for audit, the assigned IRS examination agent or team would audit every partner in the entity individually, which was costly and time consuming.

CPA VoiceRead the rest of the article online now to learn about how this approach can be problematic, more guidance issued by the IRS and why taxpayers should give serious consideration to updating partnership agreements.

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November/December 2017 Exam

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