These days, the IRS picks specific issues and then tries to find taxpayers and LB&I’s with those issues. The IRS does not hide what these issues are; they call them “International Practice Units” or IPU’s. The IPU’s aren’t a group of people, but rather a knowledge base. An auditor or audit team can use this knowledge base to easily indentify issues and outlines the protocol to follow once they have been identified.
The IRS needs to get the most “bang for their buck”, so are focusing on businesses and international targets. They know that the chances of something being wrong are probable, and the opportinities for penalties are high — even if the business doesn’t owe any additional tax.
Forms like Form 5471, Form 5472, form 8865 all have a $10,000 penalty associated with them if they are not completed correctly or not filed. Additionally, failing to file these forms makes your entire business tax return indefintiely open to audit. That is, there is no statute of limtation; the IRS could got back in time to create a big nightmate.
The stakes are high; get a team comfortable with the new IRS landscape.
The foundation for a successful business is a good tax strategy. With a solid strategy in place, it won’t matter if you are audited because you’ll be confident that you are doing everything legally to get you the best tax consequences.
If your business if facing an audit, or if you need help setting up a tax plan for your business, or would like to have us look at your current tax plan to make sure you’re getting the most preferential tax treatment, contact us to set up a free, confidential consultation. Call us at 888-727-8796 or email us at info@irsmedic.com to set up a consultation with our tax team.
We would enjoy the opportunity to see if your business and ours would make a good fit and if we can limit the exposure of an international tax audit by the IRS. We can also be a nice addition to your current team; we work with tax professionals from around the world.
We invite you to review success stories and case studies of clients of ours.
