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Withholding Compliance Efforts for Partnerships With Foreign Partners Can Be Improved

Report Information

Date Issued
Report Number
2020-30-026
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Commissioner, Large Business and International Division, should request that Submission Processing sites strengthen controls to ensure that the Code and Edit function corresponds with partnerships when there are no Forms 8805 attached to Form 8804 reporting Effectively Connected Taxable Income (ECTI) and withholding amounts or in the Project 1446 database.

The Commissioner, Large Business and International Division, should request that Submission Processing sites establish procedures for tax examiners to prevent duplicate or multiple Forms 8805 filed by partnerships from being entered into the Project 1446 database.

The Commissioner, Large Business and International Division, should establish procedures using Form 8805 data to identify potential nonfilers (foreign partners that do not file an income tax return) and underreporters (foreign partners that do not report their partnership ECTI on their income tax return).