12/11/2023
Partnerships and high net worth taxpayers should be prepared for an increase in IRS audit activity in the coming months and years.
Maintenance and retention of financial records, as well as documentation supporting tax positions likely to be challenged, will be critical.
Prudent taxpayers can take action by:
1.Work with your tax advisor to ensure accurate reporting and prepare for an examination in advance, and
2. Ask your advisors to perform an Audit Readiness Assessment that identifies tax return items that the IRS is likely to examine. This will enable taxpayers to further support those items.
IRS will use AI to help target partnerships and high net worth individuals
The IRS announced a sweeping enforcement effort that will engage AI to focus on large partnerships and wealthy individuals.