S Corporations and Partnerships, Be Prepared: Audit Percentages Increase

According to recently released IRS examination percentages for the last 10 years, S corporations and partnerships are being audited at higher rates for fiscal year 2015 while large C corporations (assets $10 million and higher) are being audited at the lowest percentage in 10 years—down to 11.15% of returns examined in fiscal year 2015, a decrease of 8.83% from 2014 when 12.23% of returns were audited.

As the IRS has shifted resources from corporate examinations to passthrough entities, subchapter S corporations audits have increased by 11.11% from 2014 to 2015 and partnership audits experienced an 18.6% for the same period. Further published examination information can be found at: www.irs.gov/uac/Newsroom/Fiscal-Year-2015-Enforcement-and-Service-Results.

If you are contacted by the IRS, it can be critical to have a tax resolution specialist who can assist you in handling the audit. For more information on IRS audit assistance, visit our IRS Representation services page or contact our office at 703.385.8888.

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