IRS intensifies scrutiny of Schedule K-1s.

• Position: IRS News - Brief Article

The IRS has launched a new compliance effort to encourage taxpayers to properly report partnership, S corporation or trust income or losses on their individual tax returns. Some taxpayers may receive notices requesting an explanation for a discrepancy.

Earlier this year the IRS began matching information reported on Schedule K-1 with income or losses reported on Form 1040 and other schedules.

The IRS will send notices to taxpayers when there is a mismatch in information provided on tax year 2000 returns. In many cases, the issue can be resolved with a letter or phone call.

The IRS processed more than 18 million Schedule K-1s for tax year 2000...