Centralized Partnership Audit Regime Rules Have Been Implemented; However, Initial No-Change Rates Are High and Measurable Goals Have Not Been Established

The Commissioners, Large Business and International (LB&I) Division and Small Business/Self-Employed (SB/SE) Division, should formulate an action plan to reduce the centralized partnership audit regime examination no-change rates, and if the no-change rates do not fall within an acceptable range, a study should be conducted to identify and address the factors contributing to the high rate.

The Commissioners, Large Business and International (LB&I) Division and Small Business/Self-Employed (SB/SE) Division, should establish overall partnership examination goals and measurements that address the expected outcomes from the implementation of the centralized partnership audit regime.

The Commissioner, Large Business and International (LB&I) Division, should implement a fully systemic method of monitoring and verifying pushouts are properly reported on partners’ returns