The U.S. Internal Revenue Service (IRS) has officially launched its new unit dedicated to “more efficiently conduct audits” of entities known as pass-through businesses.
The initiative targets pass-through 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 said 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.”…