New Areas of IRS Audit Interest Identified

The Internal Revenue Service (IRS) Large Business & International Division has announced six new tax compliance campaigns that indicate where the IRS may focus its audits. These campaigns will be carried out through letters and examinations and include the following areas:

  1. S corporations built in gains tax (increasing awareness)
  2. Post Offshore Voluntary Disclosure Program (OVDP) compliance (addressing noncompliance with foreign income and asset reporting requirements)
  3. Expatriation (U.S. citizens and long-term residents who expatriated on or after June 17, 2008, and may have failed to meet filing requirements)
  4. High income non-filer (U.S. citizens who have not filed a tax return)
  5. Erroneous refundable credits in U.S. territories (U.S. citizens who erroneously claimed refundable credits on their individual tax return)
  6. Section 457A deferred compensation attributable to services performed before January 1, 2009
More information can be found on the IRS website:  https://www.irs.gov/businesses/large-business-and-international-compliance-campaigns , or by contacting your trusted advisor at Arnett Carbis Toothman LLP.