The Treasury Inspector General for Tax Administration yesterday released Actions Are Needed in the Identification, Selection, and Examination of Individual Tax Returns With Rental Real Estate Activity (2011-30-005):
The IRS should increase its examinations of individual tax returns that report losses from rental real estate activity, according to a new audit report released publicly today by TIGTA. … [A] GAO report in August 2008 stated that at least 53% of individual taxpayers with rental real estate activity for Tax Year 2001 misreported their rental real estate activity, resulting in an estimated $12.4 billion of net misreported income. [Tax Gap: Actions That Could Improve Rental Real Estate Reporting Compliance (GAO-08-956)]
- Accounting Today, IRS to Examine Rental Losses More Closely
