Firm Contests Tax Penalties From Limited Partner Classification

A Georgia partnership is contesting the IRS’s classification of several of its partners, causing it to incur a higher tax burden.

Fortis Siteworks LLC petitioned the US Tax Court after the IRS increased the organization’s 2021 taxes by $1.1 million and asserted another $224,000 in penalties. The determination came from the IRS increasing Fortis’ net earnings from self employment by over $2 million and disallowing another deduction of about $949,000 for business expenses, according to the petition filed Dec. 15.

The IRS has made similar moves against a number of partnerships, mostly financial firms with large tax debts, based on ...