The IRS has officially launched a new unit that it states will “more efficiently conduct audits” of entities known as pass-through businesses.
The initiative targets businesses that pay no taxes on their revenue. Instead, the income generated is passed on to owners who then file taxes based on their individual taxation rates. Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations.
In September, the IRS stated that it is establishing a unit within the agency’s Large Business and International (LB&I) division focusing on large or complex pass-through entities.
On Oct. 22, the agency announced that the unit “has officially started work.”
The new department will seek to ensure compliance from pass-through entities of every size and form, including S-corporations, partnerships, and trusts. The agency stated that these businesses are being used to evade taxes. […]
— Read More: www.theepochtimes.com
