IRS suspends Schedule K-1 matching program. (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. stopped issuing taxpayer notices Aug. 1, regarding discrepancies between the information on tax year 2000 Schedules K-1 and individual tax returns. Thanks to the help of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). CPAs, CalCPA and the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). were able to coordinate collection of dozens of examples of problems taxpayers were having with the IRS Schedule K-1 matching program. The IRS had hoped that the K-1 computer matching process would enhance tax compliance by encouraging taxpayers to properly report partnership, S corporation or trust income or losses on their individual tax returns. While the IRS had announced that it would use examiners to manually screen notices to minimize any error rates in the notices sent to tax payers tax payer n → contribuyente m/f tax payer n → contribuable m/f tax payer n → contribuente , this screening process appears to have proved ineffective. Notices that the IRS issued before Aug. 1 remain valid and should be responded to by taxpayers or their representatives. |
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