A blog post

New IRS High-Wealth Task Group

Posted on the 09 February, 2010 at 8:30 am Written by in Taxes

On October 26, 2009, IRS Commissioner Douglas Shulman announced the creation of a new group to target high-wealth individuals. This group (the Global High Wealth Industry Group) will be housed within the Large and Mid-Size Business (LMSB) Division.

The idea is to centralize IRS compliance efforts.  The IRS will take a unified approach to look at sophisticated financial, business, and investment arrangements across multiple entities with complicated legal structures and tax consequences.

Shulman seemed to indicate that current IRS efforts typically involve identifying single returns for audit based on the usual scoring systems for audit selection. The new program would instead look at everything that may be connected to a single taxpayer, including trusts, private foundations, partnerships, equity-sharing arrangements, royalty and licensing agreements, and privately held and related entities where the taxpayer may have actual or beneficial ownership.

Shulman said the IRS will initially focus on individuals with “tens of millions of dollars” in assets or income.