The New Global High Wealth Unit of the IRS

Many individuals are wondering whether the IRS intends to use its new audit unit to develop tax enforcement cases. A former high-ranking executive with the IRS provides answers in this 2011 FOX Financial Executives Forum presentation.

• The IRS has created a new enforcement unit and hired nearly 3,000 examiners specifically to audit wealthy taxpayers who hold an interest in investments and businesses through complex domestic and international structures. 
• Wealth owners can expect the equivalent of a large business exam, which involves a team of examiners with the ability to chart out related entities and determine which has the most significance. Exams can take 18 to 24 months. 
• Wealth owners should be aware of what is in the public domain, as the IRS is using everything it can find on the Internet. 
• Other leading practices: Be organized. Try to limit the issues to those of most significant. Make sure there is regular discussion of your case. Keep status meetings on track. Ask about fast track resolution.