Partnerships on the Radar
Audits of more partnership returns are on the IRS’s radar. In 2019, the Service audited only 0.2% of partnerships, and the examination rate this year may fall even lower. IRS wants to beef up the figure. It is hiring more revenue agents and tax law specialists and launching additional targeted compliance campaigns, to focus on issues relating to partnerships and their owners. Per an agency official, IRS expects to conduct 50% more partnership audits in 2021 than in 2020.
