IRS wants to audit more S corporations and partnerships focusing on these areas:
- Losses deducted that are in excess of basis
- Loss limitations due to at-risk rules and passive activity rules
- S corporation officer compensation
- Unreported income
- Abusive tax avoidance transactions
My CPA Practice Advisor article focuses on IRS compliance efforts to audit more flow-through entities and what you can do to prepare for an IRS inquiry or audit of your S corp or partnership.
