IRS Opens Business Divisions to Pursue Tax Schemes

The IRS is getting serious about corporate tax schemes, according to a new report. The Service has opened its new Large and Mid-Size Business Division so examiners and agents can focus on illegal corporate tax shelters.

The office also is designed to encourage companies to stop the shelters before they ever start by distributing information on the various schemes.

The IRS reports that large financial services and accounting firms are the ones responsible for perpetuating these illegal shelters, and the cost to the government totals more than $10 billion annually.

What constitutes an illegal shelter? For example, large tax breaks were obtained when companies residing in the United States leased government facilities in foreign countries, then rented them back to these local, foreign governments.

As another measure, Federal legislation and new rules from the IRS are underway to require companies to actually list the shelters.

You may like these other stories...

Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...
Anti Burger Kings: Seven US companies shrinking tax the old-fashioned wayBurger King’s decision to combine with Canadian donut shop Tim Hortons is renewing controversy over the lengths some US companies will go to...
A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.The study, conducted by UNITE HERE International Union, a labor union that...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 26
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.