IRS to Use Data to Target Partnerships At Risk of Breaking Rules

The IRS is developing a program to use data analytics to target large, complex partnerships that are most at risk of running afoul of tax laws and regulations.

The program will be comparable to the agency’s large corporate compliance program, said Nikole Flax, deputy commissioner of the Large Business & International Division. Under that program, which was announced in May 2019, the IRS uses data analytics to automatically target big companies with a high risk of compliance issues surfacing during an audit.

• The 2019 program replaced a previous, less automated program.
• The partnership program is a bit further behind ...