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
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access