IRS intensifies scrutiny of Schedule K-1s. (IRS News).The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. has launched a new compliance effort to encourage taxpayers to properly report partnership, S corporation or trust income or losses on their individual tax returns. Some taxpayers may receive notices requesting an explanation for a discrepancy DISCREPANCY. A difference between one thing and another, between one writing and another; a variance. (q.v.) 2. Discrepancies are material and immaterial. . Earlier this year the IRS began matching information reported on Schedule K-1 with income or losses reported on Form 1040 and other schedules. The IRS will send notices to taxpayers when there is a mismatch mismatch 1. in blood transfusions and transplantation immunology, an incompatibility between potential donor and recipient. 2. one or more nucleotides in one of the double strands in a nucleic acid molecule without complementary nucleotides in the same position on the other in information provided on tax year 2000 returns. In many cases, the issue can be resolved with a letter or phone call. The IRS processed more than 18 million Schedule K-1s for tax year 2000 recording $1.2 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. in income to partners, stockholders and beneficiaries. To date, some 65,000 notices have been issued in which the IRS found a mismatch between the information return and the individual's tax return. IRS examiners manually screen mismatched returns to ensure consideration of issues such as passive loss limitations and income or losses reported on Schedule E. |
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