IRS High-Income Initiative Will Include Related Entities

The IRS’s Large Business & International Division will be looking at related entities as it goes forward with a recently announced initiative to audit hundreds of high-net-worth taxpayers, an official said.

“The LB&I cases will include at least one related entity, most often a partnership, could be an S corp as well, and that could expand, you know, based on the examiner’s risk assessment of the return,” said Holly Paz, director of LB&I’s Passthrough Entities Practice Area. Paz was speaking at a virtual tax controversy conference hosted by the University of California, Los Angeles.

LB&I Commissioner Douglas O’Donnell said ...