Hale E. Sheppard article on "Analyzing Obstacles for the IRS in Approaching Partners During Partnership Tax Disputes"
Hale E. Sheppard
Taxation of Exempts
When engaged in a tax dispute with a partnership, the IRS wants to gather as much data as possible from all sources, including the partners. A major impediment for the IRS is that its ability to contact partners directly (during an audit, an administrative appeal, or in preparation for Tax Court litigation) can be limited or prohibited altogether. This has not stopped the IRS from trying, though. This article explains the relevant procedural matters, provides an overview of the easement donation process and its key characters, and describes four major problems that the IRS faces in approaching individual partners, using recent court orders to illustrate the situation.