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 San Diego businesses?
The first relates to solar power, wind generators and other alternative energy solutions. San Diego is a leading hub of high tech and engineering firms and expertise, many of whom work on the type of issues contained in the new “campaigns.”
The second relates to IRS FBAR compliance and the Offshore Voluntary Disclosure Program or the OVDP. The IRS has announced that one of the campaigns will focus on US taxpayers who were denied access to the OVDP and those who may have been accepted but have either fallen behind on required filings and negotiated settlement payments or withdrawn from the program altogether. Allen Barron has taken a leadership position in San Diego regarding FBAR education, consultation and compliance expertise and will continue to help those with offshore bank or investment accounts to come into and remain in compliance.
Another campaign focuses on what the IRS terms “Related Party Transactions” which really means transfer pricing. Congress intends to focus upon this issue in a few months as the IRS is concerned that business taxpayers are using transfer pricing and other related party transactions to inappropriately shift or defer income, increase the value of deductions, avoid “second level” taxation and in some cases actively attempt tax evasion or outright tax fraud. Section 482 of the Internal Revenue Code or IRC issues associated with like-kind exchanges, transfer pricing and other related party exchanges are a principle focus of this “campaign” as well as debt to equity characterization issues associated with recent IRC 385 updates.
As the IRS launches new campaigns it signals areas of business tax audits as well as internal business accounting processes and procedures that must be reviewed and improved by all San Diego businesses. Allen Barron is uniquely positioned to serve your company – especially those with international business or affiliated corporations or entities. We invite you contact the experienced international tax attorneys, business attorneys and advisory consultants, accountants and tax preparation experts at Allen Barron for a free consultation at 866-631-3470. Learn how our single-source services leverage economies of scale while providing broader and more in-depth insight into the challenges and opportunities that lie within your San Diego business.
