Last week, the IRS announced five new compliance campaigns. Through these campaigns, the IRS will be focusing on certain issues in its identification of returns for audits. Three of those campaigns involve partnerships. Specifically, the IRS stated that it will be targeting service partners in partnerships who fail to report flow-through income as self-employment income and do not pay SECA tax. The IRS is also looking for partnerships that continue to have economic transactions, but fail to file partnership returns. This campaign will include outreach to individual partners to determine the status of the partnership. Finally, the IRS will be auditing the sale of partnership interests to determine whether rates other than the long-term capital gain rate applies.
The full announcement can be found here.