Understanding the Tax Gap’s Impact on Alt Investments

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BY Scott Turner
September 2
The taxation of alternative investments is fast-changing and increasingly complex. K1x leadership will convene for an interactive discussion focused on the “Tax Gap”: what it is, where it is and changes within the IRS to attack it.

In short, the federal tax gap is a measure of taxpayer noncompliance. Our upcoming webinar will provide insight into how it’s measured, specific sectors driving this gap and overall compliance within a sector.

The federal tax gap is a measure of taxpayer noncompliance.

Want a hint on what’s really driving the tax gap? Despite partisan rhetoric, many tax experts don’t believe that there are large amounts of uncollected taxes from large corporations. Based on IRS research, the largest gap comes from individuals and largely due from reporting via flow-through entities such as partnerships, S Corporations and trusts.

Execs who join this session will be eligible for one (1) CPE credit, but there is long-term value inherent in hearing directly from the panelists, who represent some of the most specialized and trusted sources in the field. K1x CEO John LaMancuso will moderate the discussion, which will be driven by David F. Eisner, K1x Board Member and the Former Assistant Secretary for Management at the Treasury Department. They will also be joined by Geralyn Hurd, a CPA with 32 years experience in this field and President and Co-founder of K1x.

All parties have deep expertise in tax, operations and technology implementation, which will set a powerful foundation for this timely, and critical, discussion.

Why Should Investors Care About the Tax Gap?

To put it simply and bluntly, everyone should care about the tax gap. As the tax gap grows…

  • There are fewer funds available to support new programs or reduce our debt.
  • Compliant taxpayers are more likely to experience the aftershocks via future tax changes (either hikes or reductions).
  • Public trust and confidence in our tax system and government will suffer.

Tax reporting and enforcement efforts established by the IRS have been designed in an effort to close the tax gap.

Tax reporting and enforcement efforts established by the IRS have been designed in an effort to close the tax gap. This webinar will focus on the IRS’ planned enforcement efforts.

A Perfect Storm for Investors

IRS enforcement efforts have amplified the risks and troubles for those reporting on alternative investments. Increased reporting requirements (e.g. Schedule K-3) have created more complexity. At the same time, we have seen explosive growth in alternatives and the investors attracted to these investment vehicles.

However, skilled accountants are leaving the field in droves, which means investors have fewer resources to drive the management, reporting and filing of the mounds of paperwork required to reduce risk and maintain compliance.

We are in the midst of a perfect storm.

But the good news is our panel of specialists will help you prepare your organization and its investors. By attending, you’ll be better equipped to:
  • Assess your reporting risks and identify areas of improvement and documentation​
  • Determine gaps in your overall K-1 reporting process​.
  • Initiate a transformation program to streamline and improve your overall tax reporting plan.​
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