New IRS Unit Begins Targeting Pass-Through Businesses

The agency says the initiative will ‘increase fairness’ in its enforcement activities.
New IRS Unit Begins Targeting Pass-Through Businesses
People walking near the IRS building in Washington on Jan. 4, 2024. Madalina Vasiliu/The Epoch Times
Naveen Athrappully
Updated:
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The IRS has officially launched a new unit that it states will “more efficiently conduct audits” of entities known as pass-through businesses.

The initiative targets businesses that pay no taxes on their revenue. Instead, the income generated is passed on to owners who then file taxes based on their individual taxation rates. Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations.