The US Internal Revenue Service (IRS) has announced the realignment of its large and mid-size business (LMSB) division to create a more centralized organization dedicated to improving international tax compliance.
As part of the IRS’s organizational revamp, the name of the LMSB unit will change on October 1 to the large business and international (LB&I) division. The new LB&I unit will enhance the current international program, adding about 875 employees to the existing staff of nearly 600. Most of the additional examiners, economists and technical staff are current employees who specialize on international issues within other parts of LMSB.
The realigned LB&I will continue to serve the same population of taxpayers – corporations and partnerships with assets greater than USD10m, as well as certain high wealth individuals.
The realignment will strengthen international tax compliance for individuals and corporations in several ways, including: the identification more quickly of emerging international compliance issues; the removal of geographic barriers, allowing for the dedication of IRS experts to the most pressing international issues; and an increase in international specialization among IRS staff by creating economies of scale and improving IRS international coordination.
In addition, the new structure will ensure that the right compliance resources are allocated to the right cases, and will consolidate oversight of international information reporting and the implementation of new programmes, such as the Foreign Account Tax Compliance Act (FACTA).
The competent authority will also be coordinated more closely with field staff who originate cases, especially those dealing with transfer pricing. It will, in fact, centralize and enhance the IRS’s focus on transfer pricing. The new international unit will include a transfer pricing director, who will continue piloting the new transfer pricing practice, and a chief economist, who will oversee the IRS’s economic positions pertaining to transfer pricing.
“Executing our international strategy is a top priority, and our work continues to intensify in this area,” said IRS Commissioner, Doug Shulman. “Every day, we are moving forward in our international compliance efforts. Bringing together our top international personnel in this new group will help us advance our global tax administration efforts and ensure focus and fairness in a critical area for our nation.”
“The realigned organization will let us focus on high-risk international compliance issues and handle these cases with greater consistency and efficiency as we continue to increase our work in this area,” he continued.
The IRS added that its announcement marks the latest in a number of efforts it has made to increase international tax compliance. The IRS has taken major steps to address offshore tax evasion, including the investigation of the misuse of undisclosed offshore accounts by US taxpayers.
For example, LB&I is charged with overseeing the implementation of the recently-enacted FATCA, which aims to improve international information reporting, increasing international transparency and compliance. The IRS and the Department of Treasury have also worked to revise tax treaties and tax information exchange agreements
As part of the IRS’s organizational revamp, the name of the LMSB unit will change on October 1 to the large business and international (LB&I) division. The new LB&I unit will enhance the current international program, adding about 875 employees to the existing staff of nearly 600. Most of the additional examiners, economists and technical staff are current employees who specialize on international issues within other parts of LMSB.
The realigned LB&I will continue to serve the same population of taxpayers – corporations and partnerships with assets greater than USD10m, as well as certain high wealth individuals.
The realignment will strengthen international tax compliance for individuals and corporations in several ways, including: the identification more quickly of emerging international compliance issues; the removal of geographic barriers, allowing for the dedication of IRS experts to the most pressing international issues; and an increase in international specialization among IRS staff by creating economies of scale and improving IRS international coordination.
In addition, the new structure will ensure that the right compliance resources are allocated to the right cases, and will consolidate oversight of international information reporting and the implementation of new programmes, such as the Foreign Account Tax Compliance Act (FACTA).
The competent authority will also be coordinated more closely with field staff who originate cases, especially those dealing with transfer pricing. It will, in fact, centralize and enhance the IRS’s focus on transfer pricing. The new international unit will include a transfer pricing director, who will continue piloting the new transfer pricing practice, and a chief economist, who will oversee the IRS’s economic positions pertaining to transfer pricing.
“Executing our international strategy is a top priority, and our work continues to intensify in this area,” said IRS Commissioner, Doug Shulman. “Every day, we are moving forward in our international compliance efforts. Bringing together our top international personnel in this new group will help us advance our global tax administration efforts and ensure focus and fairness in a critical area for our nation.”
“The realigned organization will let us focus on high-risk international compliance issues and handle these cases with greater consistency and efficiency as we continue to increase our work in this area,” he continued.
The IRS added that its announcement marks the latest in a number of efforts it has made to increase international tax compliance. The IRS has taken major steps to address offshore tax evasion, including the investigation of the misuse of undisclosed offshore accounts by US taxpayers.
For example, LB&I is charged with overseeing the implementation of the recently-enacted FATCA, which aims to improve international information reporting, increasing international transparency and compliance. The IRS and the Department of Treasury have also worked to revise tax treaties and tax information exchange agreements
