As a U.S. citizen or resident living in Virginia, you have an obligation to report your income to the Internal Revenue Service (IRS). This is true regardless of what you do with your income—whether you receive direct deposits, deposit your paychecks with your bank, or cash your paychecks as soon as you receive them.

Facing a partnership tax audit means dealing with the Internal Revenue Service (IRS). The IRS has prioritized partnership tax compliance in recent years, and audits targeting partnerships can lead to substantial liability not only for the entity but potentially for individual partners as well.