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IRS Announces Five Additional Examination and Compliance Campaigns

December 06, 2018

The IRS Large Business and International Division (LB&I) has announced 5 additional compliance campaigns aimed to improve return selection. Read on.

On October 30, 2018, IRS Large Business and International division (LB&I) announced five additional examination and compliance campaigns. A compliance campaign is a process in which IRS decides which compliance issues present the highest taxpayer non-compliance risk and require a response in the form of one or multiple “treatment streams” to achieve compliance objectives. This approach makes use of IRS knowledge and deploys the right resources to address those issues.

More about the 5 campaigns

  • Individual Foreign Tax Credit Phase II - This campaign targets individuals who have claimed the IRC §901 foreign tax credit, but do not meet the requirements. Through this campaign, the IRS will address noncompliance through a variety of treatment streams, including examination.
  • Offshore Service Providers - This campaign would affect U.S. taxpayers who engaged Offshore Service Providers to facilitate the creation of foreign entities and tiered structures with a primary objective of concealing the beneficial ownership of foreign financial accounts and assets. The IRS will use issue-based examinations to address this campaign
  • FATCA Filing Accuracy - The IRS is targeting entities that have FATCA reporting obligations but do not meet their compliance responsibilities. The purpose of FATCA is to detect, deter and discourage offshore tax abuses through increased transparency. The Service will address noncompliance through a variety of treatment streams, including termination of the FATCA status.
  • 1120-F Delinquent Returns Campaign - Through examination and external education outreach program, the IRS’s hopes to encourage foreign entities to timely file Form 1120-F. The IRS will accomplish this through field examinations of compliance risk delinquent returns and external education outreach programs.
  • Work Opportunity Tax Credit (WOTC) - This campaign targets late certification problems and aims to establish consistency in the examinations of WOTC claims.

Questions on these 5 campaigns and how they will impact your business? Reach out to any member of our Tax Services Team.

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