George Hani Comments on Large Partnership Audit Responsibility Following 2015 Budget Act in CFO

"U.S. Budget Clears Way for IRS Audits of Partnerships"
11.05.15George Hani commented on the shift of administrative burdens of auditing from the Internal Revenue Service (IRS) to corporate partnerships as a result of the recently passed Bipartisan Budget Act of 2015. Previously, the IRS was responsible in its audits of large partnerships for assessing and collecting the shortfalls in payments from individual partners. "When you had small partnerships -- of a dozen or fewer partners -- that was relatively easy," Hani said. But when it came to hedge funds and other big partnerships, "identifying who all those partners were and collecting 20 cents from everybody was viewed as not worth the time and effort. And that's why the government essentially left those alone." However, the framework has now flipped. "It's incumbent upon the partners[hip] to make that happen, as opposed to the old system, where it was incumbent upon the IRS," he added.
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