IRS Should Target Large, Complex Partnerships, Watchdog Says

The IRS should focus on large and complex partnerships during audits as the number of partnerships continues to rise, the Government Accountability Office found in a report released Thursday.

The Biden administration’s Inflation Reduction Act infused the IRS with $80 billion in funding—$45.6 billion of it for enforcement. Although the administration subsequently agreed with the GOP to claw back $20 billion of that pot, the agency has detailed its priorities, including a focus on partnerships.

GAO recommended the IRS develop guidance to define large and complex partnerships and ways to track noncompliance in audits.

• The number of large partnerships with ...