The Internal Revenue Service’s Large Business & International Division has announced another compliance campaign, its 64th such campaign since the first set of campaigns was unveiled in 2017. This latest campaign will focus on the Tax Cuts and Job Act legislation enacted in late 2017.
These compliance campaigns reflect LB&I’s movement toward issue-based examinations and a compliance process in which LB&I decides which tax issues that present risk require a response in the form of one or multiple treatment streams to achieve compliance objectives. This approach is intended to make the best use of the IRS’s knowledge and to deploy the right resources to address these issues. The campaigns are the culmination of an extensive effort to redefine large business compliance work and build a supportive infrastructure inside LB&I. The overall goal is to improve return selection, identify issues representing a risk of non-compliance, and make the greatest use of limited resources. A complete list of all active campaigns is available here. A list of retired campaigns is available here.
The Tax Cuts and Jobs Act (TCJA) campaign was created to closely monitor issues relating to the TCJA. LB&I will be examining a select pool of returns that reflect tax law changes brought about by the TCJA, and will share that information throughtout the IRS. As part of this campaign, LB&I will also consider the impact of the CARES Act on these returns as well as any others examined. The goal of this campaign is to identify transactions, restructuring, and technical issues and better understand taxpayer behavior under the new law. The treatment streams for this campaign may include examinations, soft letters, outreach, new and improved practice units, and development of future issue-based campaigns.
Please check out Fox Rothschild’s coronavirus resource page, which is available here.
For more up-to-date coverage from Tax Controversy and Financial Crimes Report, please subscribe by clicking here.