The Internal Revenue Service (IRS) is ramping up its scrutiny on large, intricate partnerships as part of an effort to zero in on compliance issues. However, the agency is still in the process of defining what aspects of compliance it will target, according to statements made by IRS officials this past Tuesday.
The approach to these audits has been described as “open-minded” by IRS Field Operations Director Roger Benesch. This indicates the IRS’s willingness to adapt its focus and techniques based on what the investigations uncover.
In order to provide specialist knowledge for the task at hand, the IRS has appointed experts in partnership law. Among the duties of these specialists would be to assist the agency in defining what elements should constitute the focus of its audits
The recent reportage, which was shared at a conference in Palo Alto, California, points to shifting and increasingly proactive strategies employed by the IRS in an effort to navigate the complicated waters of large business and international audits. How these changes will manifest in practice and what impact they will have on practice and policy in the world of big partnerships remains to be seen.
For more details on this development, you can read the original report on Bloomberg Tax.