IRS Should Enhance Audit Efficiency Of Large Partnerships: GAO

With more businesses organizing themselves as partnerships, IRS needs to enhance audit efficiency, suggests a new GAO report. United States Government Accountability Office in its September 2014 report on “Large Partnerships” has recommended that the IRS take multiple actions to enhance audit efficiency. Audit efficiency: Growth in large partnerships According to the report, businesses have shown increasing preference to organizing as partnerships and other pass-through-entities instead as C Corporations in recent years. As can be noted from the following graph, during tax years 2002 through 2011, the number of partnerships and S corporations of all sizes increased 47% and 32%…