The IRS Large Business and International division (LB&I) announced
five new compliance campaigns on March 13.
The audit campaigns are part of a strategy in the large- and mid-sized business arena to move toward more issue-focused examinations. The strategy arose from a restructuring of LB&I by the IRS in the wake of resource constraints. The campaigns are identified by the IRS through data analysis, suggestions from IRS compliance employees and feedback from the tax community. The IRS’s goal is to identify and reduce non-compliance through the campaigns by way of “treatment streams,” which will feature a mix of issue-focused examinations, externally published guidance, practitioner outreach and soft letters.
This latest batch of campaigns, which focus mostly on partnership tax issues, brings the total number of campaigns up to 29. The IRS has yet to remove a campaign from its list. In January 2017, the IRS released its first batch
of 13 campaigns and followed up in November 2017
with 11 more.
The five newest campaigns are:
- Costs that facilitate a Section 355 transactions, such as spin-offs
- Self-Employment Contributions Act (SECA) tax for partners and limited liability company members
- Partnership that stop filing returns
- Treatment and character of the sale of partnership interests
- Partial disposition election for buildings
The treatment streams for these campaigns vary, and may include the issuance of guidance or soft-letters, but the IRS has indicated that each campaign will also include an element of issue-based examinations.
Tax Practice Policy & Quality
T +1 202 521 1513
Washington National Tax Office
T +1 202 521 1511
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.