September 8, 2023
IRS announces new compliance initiative focusing on large partnerships, high-income taxpayers
The IRS has announced that it is increasing its scrutiny of "high-income earners, partnerships, large corporations and promoters abusing the nation's tax laws." As part of this effort, the IRS is expanding its existing Large Partnership Compliance (LPC) program to additional large partnerships with the help of artificial intelligence and expects to open examinations of 75 of the largest partnerships that have an average of more than $10 billion in assets. In addition, the IRS will expand its focus on high-risk large partnerships to address balance sheet discrepancies through compliance letters. The IRS will also "intensify work" on taxpayers with over $1 million in income that have tax debt of over $250,000. A Tax Alert is forthcoming.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor