United States

IRS LB&I Division announces third group of compliance campaigns

The campaigns cover five topics from two practice areas

TAX ALERT  | 

On Mar. 13, 2018, the Large Business & International (LB&I) Division of the IRS announced that it was adding five new compliance campaigns to the 11 campaigns announced in November 2017 and 13 campaigns announced in January 2017. LB&I originally created the campaigns to ensure taxpayer examinations remain issue-based. The campaigns are intended to focus on compliance issues that present the greatest risk of non-compliance. Like the previously announced campaign issues, the new five campaign topics were identified through the suggestions of IRS compliance employees and LB&I data analysis.

The following table summarizes  the new campaigns, including the practice areas, focus, treatment stream and lead executive.

Campaign

Practice Area

Focus

Treatment Stream

Lead Executive

Costs that facilitate an IRC Section 355 Transaction

Enterprise Activities

Ensure taxpayers compliance with the requirement to capitalize, not deduct, the facilitative costs when the distribution is completed

Issue-based examinations

Scott Callint

Self Employment Contributions Act (SECA) Tax

Pass Through Entities and Northeastern Compliance

Increase compliance with the law as supported by several recent court cases

Issue-based examinations and outreach to practitioners, professional service provider associations and software vendors

Cliff Scherwinski and Darlena Billops-Hill

Partnership Stop Filer

Pass Through Entities and Western Compliance

Some partnerships stop filing tax returns for various reasons yet still have economic transactions that are not being reported to and by their partners

Issue-based examinations, soft letters encouraging voluntary self-correction and stakeholder outreach

Cliff Scherwinski and Eric Slack

Sale of Partnership Interest

Pass Through Entities and Eastern Compliance

Taxpayers who do not report the sale or report the gain or loss incorrectly

Examinations and soft-letters

Cliff Scherwinski and Joseph Banks

Partial Disposition Election for Buildings

Eastern Compliance

Ensure taxpayers accurately compute and recognize the gain or loss on the partial disposition of a building, including its structural components

Issue-based examinations and potential changes to IRS forms and the supporting instructions and publications

Judith McNamara

 

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