Page 13 - The TEFRA Partnership Audit Rules Repeal:

GAO Findings and Recommendations
Key Findings (Source: GAO, p. 37)
• IRS has little data to know why examinations of large partnerships are finding so little noncompliance
• Current rules and procedures under TEFRA and ELP present resource demands and time delays
• Passthrough adjustment calculations are labor intensive and paper driven
Key Recommendations (Source: GAO, pp. 37-39)
• Requiring large partnerships to designate a qualified Tax Matters Partner (TMP) would reduce audit delays
• Requiring large partnerships to pay any tax due at the entity level would save resources
• Extending the number of days that a TEFRA exam can be opened without triggering the need for the time-consuming audit closure procedures (the so- called “45-day rule”)
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