February 8, 2023
IRS LB&I announces new compliance campaign focusing on partnership losses that exceed partner's basis
The IRS Large Business & International division (LB&I) has announced its launch of the Partnership Losses in Excess of Partner's Basis Campaign. The description of the new compliance campaign notes that partners reporting flow-through losses from partnerships must have an adequate outside basis, as determined under IRC Section 705, to deduct the losses; otherwise, the losses are suspended under IRC Section 704(d) to the extent they exceed the partner's basis.
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor