As a follow-up to its broader “Tax Gap” study completed last spring, the IRS yesterday announced it will engage in a multiyear study of about 5000 taxpayers reporting S corporation income or losses. According to the IRS release (see below), the study “will be used to more accurately gauge the extent to which the income, deductions and credits from S corporations are properly reported on returns filed by the flow through corporations and their shareholders.”

The S Corporation Alliance strongly supports appropriate IRS administration of the tax code, but numerous questions arise from the IRS announcement, including why the IRS has

(Read More)