Press Room

19 Jun 2020

IRS announces plan to increase audits of wealthy individuals


According to IRS Large Business and International (LB&I) division commissioner Douglas O’Donnell, the IRS are taking heightened action to examine high-income individuals’ tax affairs as soon as the current suspension of investigations and collections ends on July 15, 2020.

Historically, the tax returns of high net worth individuals  escaped IRS audit where the return encompassed a variety of complex subject areas, since individual IRS audit teams were not equipped to audit areas that partly involved a topic of specialism of another division. 

Now, due to an increased use of data analytics, the IRS’ ability to connect disjointed divisions is becoming increasingly advanced and the IRS are now starting to take an enterprise approach to data.

The IRS has announced a plan to bolster audit activities and has “identified over 1,000 cases or 1,000 private foundations that have linkages or that are interwoven into these global high-wealth enterprises”.

If you would like to discuss your US tax compliance and risk of audit then our personal tax and international tax teams are available to assist.

 


Julian Nelberg

Julian Nelberg

Julian is Head of the Private Client group at Andersen Tax in the United Kingdom. His clients include international high net worth individuals, senior executives, trusts and companies.

Email: Julian Nelberg