The IRS's Large Business and International Division (LB&I) Announces Six New Compliance Campaigns
Welcome to Michel Prestige Services, a leading provider in the Business and Consumer Services sector. In this article, we delve into the latest developments from the Internal Revenue Service's Large Business and International Division (LB&I) regarding six new compliance campaigns.
What is LB&I?
The IRS's Large Business and International Division (LB&I) is responsible for overseeing tax compliance among large corporations and international entities operating in the United States. This division plays a crucial role in ensuring that businesses adhere to tax laws and regulations to maintain a fair and equitable tax system.
Overview of the New Compliance Campaigns
The LB&I has recently announced six new compliance campaigns aimed at addressing specific tax issues and areas of concern within the business community. These campaigns focus on enhancing tax compliance and closing tax gaps through targeted enforcement efforts.
1. Transfer Pricing
The first campaign focuses on transfer pricing, which involves the pricing of goods, services, and intellectual property transferred between related entities. The IRS is scrutinizing transfer pricing practices to ensure that multinational companies are not engaging in tax avoidance through improper pricing mechanisms.
2. S Corporation Distributions
Another key campaign targets S corporations and their distributions to shareholders. The IRS is monitoring these distributions to prevent abuse and ensure that shareholders are reporting their income accurately.
3. Virtual Currency
The rise of virtual currency transactions has led the IRS to launch a campaign to address tax compliance issues related to virtual currencies such as Bitcoin. The agency is cracking down on individuals and businesses that engage in virtual currency transactions to evade taxes.
4. Individual Foreign Tax Credit
The Individual Foreign Tax Credit campaign aims to address tax compliance issues related to foreign tax credits claimed by individuals. The IRS is focusing on ensuring that taxpayers correctly calculate and report their foreign tax credit claims.
5. Section 965 Transition Tax
Section 965 of the Internal Revenue Code imposes a one-time transition tax on the accumulated foreign earnings of certain foreign corporations. The IRS is enforcing compliance with this tax provision to prevent tax evasion and ensure accurate reporting.
6. Non-Filer and Not-Yet-Filed Taxpayers
The final campaign targets non-filers and taxpayers who have not yet filed their tax returns. The IRS is intensifying its efforts to identify and bring non-compliant taxpayers into compliance through enforcement actions and outreach programs.
Stay Informed with Michel Prestige Services
As a trusted provider in the Business and Consumer Services industry, Michel Prestige Services is committed to keeping our clients informed about the latest developments in tax compliance and regulatory changes. Our team of experts can help your business navigate complex tax issues and ensure compliance with IRS regulations.
For more information about the IRS's Large Business and International Division and the new compliance campaigns, contact Michel Prestige Services today.
