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Tax Administration: IRS' Partnership Compliance Activities Could Be Improved

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Report Type Reports and Testimonies
Report Date June 16, 1995
Report No. GGD-95-151
Subject
Summary:

In fiscal year 1992, the number of partnerships totaled about 1.5 million--about the same as in 1981. During this period, however, the number of partners nearly doubled from 9.1 million to 15.7 million, partnership assets rose from $1 trillion to $1.9 trillion, and partnership net income went from a net loss of $4.1 billion to a net gain of $42.9 billion. Between 1988 and 1992, IRS audits of partnerships decreased by nearly half--from 0.93 percent to 0.50 percent--while audits of corporations more than doubled. Meanwhile, IRS in 1989 dropped its program to detect partnerships that have stopped filing required returns. This report determines the extent of partnership compliance with federal tax laws and identifies any steps IRS is taking to improve partnership compliance and additional measures that IRS could take to improve partnership compliance.

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