The Internal Revenue Service is taking a bold step towards what it calls “restoring fairness in tax compliance.” In a sweeping initiative announced in IR-2023-166, the IRS is focusing its efforts on high-income earners, partnerships, large corporations, and promoters who may have slipped through the cracks in the past decade.
By Stacey Roberts, Director, State and Local Tax, Allen Gregory, Partner, Partnership Tax, and Lindsay Haskell, Corporate Tax
The Internal Revenue Service is taking a bold step towards “restoring fairness in tax compliance.” In a sweeping initiative announced in IR-2023-166, the IRS is focusing its efforts on high-income earners, partnerships, large corporations, and promoters who may have slipped through the cracks in the past decade.
To achieve this, the IRS is harnessing the power of AI and cutting-edge technology to uncover compliance threats and detect complex tax avoidance strategies. Their priorities include cracking down on digital asset compliance, addressing Report of Foreign Bank and Financial Accounts (FBAR) violations, regulating labor brokers, and enhancing audit and taxpayer protections.
Expect heightened audit activity if you fall within these target groups. This isn’t just a federal matter – state oversight might come into play if audit adjustments affect your state taxes.
Got questions or need guidance on tax compliance, planning, strategy, or audits? Reach out to your TaxOps Advisor today. They’re here to help you navigate these changes.
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