Dark
Light

Conquer the IRS audit: Must-have extension strategies for partnerships.

1 min read
38 views

TLDR:

Key Points:

  • The IRS is increasing audits, particularly on partnerships, using AI technology
  • Understanding partnership tax laws and extension strategies is crucial for CPAs

CPAs serving as tax advisors are facing a challenging time as the IRS ramps up audits, especially targeting partnerships with the help of AI technology funded by the Inflation Reduction Act. The Bipartisan Budget Reconciliation Act of 2015 has further complicated partnership tax laws, making it essential for CPAs to understand the implications of amending partnership tax returns and the use of extensions to support their clients.

When it comes to filing for extensions, CPAs should consider automatic extensions for partnership structures, even if clients prefer early filing. Filing for an extension allows for revisions based on new information and helps avoid the complexities of Administrative Adjustment Requests. Extensions also provide the opportunity to file a “superseding return” if needed.

While extensions provide more time to file accurate returns, it’s important to estimate and pay the tax liability by the original deadline. Filing the extension by the due date is crucial to avoid penalties. CPAs can use extensions proactively to ensure high-quality tax strategies and returns for their clients.

Previous Story

Your Daily Accounting Briefing – 2024-04-05

Next Story

Bloomberg Tax & Accounting: The New Standard in Corporate Tax Solutions

Latest from News