The Impending Large Partnership Audits

In August, the Federal Bar Association Section on Taxation held an informative roundtable on the IRS's new large partnership compliance or LPC program. One of the speakers, Maria Dolan with the IRS's Large Business & International Division (LB&I), Pass-Through Entity (PTE) office, explained that the IRS designed the LPC program to increase audit coverage of this important taxpayer pool. She reported that some of the LPC audits will begin in October.¹ Dolan also observed that partnership audit changes effected through The Bipartisan Budget Act of 2015 (commonly known as the BBA) enable the IRS to conduct an audit that is more administratively efficient than those formerly faced by the members of this historically under-audited taxpayer pool.²