So then they need to sell them, they start doing audits. 

Basically an informal audit of ones portfolio.This could be as simple as creating a few benchmarks (specific ratio of expenses, total PM fee ratios, vacancy rates and duration,etc)As much as one could assume they have a well oiled portfolio, an outside investor could find areas of improvement.

The last thing you want is the IRS showing up on your door step or for you to be caught in an audit and unable to support your stance. 4.

Bear in mind that if this is ever reviewed it will need to withstand audit-level scrutiny.

Here is a snippet from our book-First, the historical audit rate of partnerships (Form 1065) is 0.4%.

We do internal audits on our exchanges. 

Amending tax returns increases your IRS audit risk and should be avoided if there're alternatives.If you expect to owe the IRS, you will be risking IRS penalties if you miss the deadline.

That way you have a pretty solid paper trail if you ever get audited.

  (2) That I have a Third Party Audit conducted of my "company" which as stated is a single member LLC.Does anyone have any experience with the above requests? 

or only if an audit occurs?