What do they have in common? The IRS will be paying "special attention" to these three, and any other foreign athletes and entertainers, who work in the United States. The IRS recently launched an "Issue Management Team" focused on improving compliance by foreign athletes and entertainers who work in the United States. The initial focus will be on non-Citizens engaged in tennis, golf and music.
This initiative should come at no surprise. The IRS enjoys finding famous people in violation of the tax code. Why? The IRS works on intimidation because it has limited resources. It can't audit everyone. So when prosecuting tax evaders, they want to make sure they have a defendant who will earn a lots of "face time."
IRS reports that it will use a three-pronged attack for this initiative:
- Reaching out to foreign athletes and entertainers to encourage compliance with income reporting and tax payment requirements
- Providing IRS enforcement personnel with information they need to identify and work compliance issues frequently encountered with this population and
- Conducting direct compliance and enforcement activity. (which just seems to be part of Number 2, if you ask me)
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