There are indications that in 2021, the IRS could enhance the audits of partnerships.
Historically, the IRS showed mixed success with its partnership audit program. Both the Government Accountability Office and the Treasury Inspector General for Tax Administration have challenged the IRS to do a better job auditing partnerships, especially large partnerships. For years, the IRS has committed to do just that, and in 2021, the IRS may finally deliver on its commitment.
Read a November 2020 report* [PDF 188 KB] prepared KPMG LLP tax professionals
*This article originally appeared in a BNA Bloomberg publication and is reproduced with permission.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.