FAQ: What are the pros and cons of limited liability companies (LLCs)?
When starting a business or changing an existing one there are several types of business entities to choose from, each of which offers its own advantages and disadvantages. Depending on the size of...
View ArticleFAQ: How are LLCs taxed?
An LLC (limited liability company) is not a federal tax entity. LLCs are organized under state law. LLCs are not specifically mentioned in the Tax Code, and there are no special IRS regulations...
View ArticleExpect IRS Correspondence Audits of Small Business and Self-Employed to...
The IRS itself is audited by the Treasury Inspector General for Tax Administration (TIGTA). And in the most recent audit, TIGTA suggests that IRS Correspondence Audits should be expanded to audit...
View ArticleIRS Auditors Place More Focus On Partnerships As Use Of The Entity Increases
IRS officials, including Faris Fink, then Commissioner of the Small Business and Self-Employed Division, announced in 2013 that the IRS would increase its scrutiny of partnership entities. Indeed, the...
View ArticleIRS reports decline in audit coverage following budget shortfalls
The IRS budget has suffered significant funding cuts to the past few fiscal year (FY) budgets. Most recently, IRS Commissioner John Koskinen told reporters that the IRS has been forced to absorb a...
View ArticleIRS focuses on new partnership audit rules
Legislation enacted in 2015 provides new rules for IRS partnership audits. The new rules are a drastic departure from current rules and the IRS is hopeful that the rules will simplify the audit process...
View ArticleHow do I? Opt-in to the new partnership audit rules
The IRS has issued temporary regulations (T.D. 9780) that explain how a partnership can opt in to the new partnership audit regime that was enacted in the Bipartisan Budget Act of 2015 (BBA). As...
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