Report: IRS audits less than 1 percent of partnerships with over $100M in assets

The Internal Revenue Service audits fewer than 1 percent of large business partnerships, according to a recent government report.

That means some of Wall Street’s largest hedge funds and private equity firms are largely escaping close scrutiny by the IRS, said Sen. Carl Levin, D-Mich.

The Government Accountability Office says the number of large businesses organized as partnerships has more than tripled since 2002, yet hardly any get audited. In 2012, only 0.8 percent were subjected to field exams in which agents do a thorough review of books and records.

The GAO defines large partnerships as those with more than 100 partners and more than $100 million in assets.

“Auditing less than 1% of large partnership tax returns means the IRS is failing to audit the big money,” said Levin, who chairs the Senate subcommittee on investigations….more

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s