The IRS Large Business and International Division (LB&I) will be targeting TEFRA violations in partnerships based upon recent changes in partnership related tax law. TEFRA (The Tax Equity and Fiscal Responsibility Act of 1982) regulations applying to partnerships created a set of consolidated IRS audit (examination), processing and judicial procedures which...
IRS Focusing on Transfer Pricing and Offshore Earnings says Wall Street Journal
In a recent article the Wall Street Journal warned that the IRS had released information about 13 "campaigns" to target high-value tax returns for IRS audit. The IRS intends to focus upon and international businesses transfer pricing and offshore earnings and the compliance with IRS FBAR reporting and offshore account...
If You Earn Over $100,000 Your Chances of an IRS Audit Significantly Increase
If you earn more than $100,000 your chances of an IRS audit significantly increase as income rises. While it is true that budgetary cutbacks have impacted the number of audits conducted, the IRS must still generate the same volume of revenue for the US Treasury. The IRS' solution: target high...
Don’t Provide the IRS any more Information than Absolutely Necessary
If we could give one piece of advice to all US taxpayers it would be this: don't provide the IRS any more information than absolutely necessary to complete your tax return and any associated forms or worksheets. If they don't ask for it, don't provide it. If the IRS asks...
Additional IRS Audit Red Flags for Tax Return Season
It's tax season again, and the IRS has acknowledged additional IRS audit red flags to be cautious of on your 2016 tax return. Many of the IRS audit targets are not handled well by off-the-shelf "turbo" software solutions, so it is best to work with the tax preparation experts at...
IRS Audits Target S Corporation Losses
Two additional campaigns result in focused examinations as IRS audits target S Corporation losses and "Basket" transactions. A separate "campaign" has been structured to target S Corporation losses that exceed basis for that company. The IRS has organized internal professionals with specialized expertise to target heavy losses and deductions in...
IRS Launches New Campaigns to Focus Vertical Market Expertise on Tax Revenue Generation
The IRS launches new campaigns to focus vertical market expertise on tax revenue generation and compliance. Each "campaign" aligns internal IRS expertise on specific issues with the goal of "focused examination" (read: audit) on targeted matters. What are the 13 business related IRS audit campaigns and how will they affect...
IRS Audit Triggers to Avoid in 2016 Tax Returns
What Are the IRS audit triggers to avoid in 2016 tax returns and what can Allen Barron do to help those who are preparing and filing their tax returns in Rancho Bernardo, Poway and Rancho Santa Fe? There are several factors that have come out of recent statistical analysis regarding...
IRS Battle with Bitcoin Heats Up
The IRS battle with Bitcoin heats up after an exchange between a bitcoin user and the agency in court documents recently. The IRS used a "John Doe" summons against Coinbase, Inc., a bitcoin exchange in order to identify specific US taxpayers with accounts at Coinbase. This is the same strategy...