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Investment Funds’ Complexity Stymies IRS Audits, GAO Says

Large partnerships, including private-equity firms and hedge funds, are often so complex that the U.S. Internal Revenue Service can’t audit them effectively, the Government Accountability Office found.

In a report released today, the GAO focused on more than 10,000 large partnerships, which each have at least 100 partners and $100 million in assets. Most of those are in the finance and insurance industries.