Washington (August 15, 2002) -- The Internal Revenue Service has stopped sending mismatch notices about K-1 forms.Earlier this year, the IRS announced a program to match the scheduled K-1 forms from partnerships and trusts to individual returns. However, criticism of the program erupted from both practitioners and politicians alike.

"The last thing small business owners need is to spin their wheels proving their returns are accurate simply because the IRS and its computers do not have the data to explain a mismatch," said Senator Kit Bond. "That is a heavy burden that amounts to an unnecessary, virtual audit."

Although the IRS has stopped sending out notices about K-1 matching effective August 1, 2002, any notices dated prior to August 1 are valid and taxpayers should respond.

-- Electronic Accountant Newswire staff

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