The US IRS’s Large Business and International (LB&I) division on October 30 announced that has selected five additional compliance campaigns where it will focus its resources.
The IRS will focus on FATCA filing accuracy by foreign financial institutions and others required to report under the FATCA. Noncompliance will be addressed through termination of the FATCA status and other means.
A new IRS “delinquent returns campaign” will address foreign entities that fail to timely file Form 1120-F returns. This form must be filed for a foreign corporation to claim deductions and credits against its effectively connected income, the IRS said.
A campaign focusing on withholding and individual compliance will address US taxpayers who engage offshore service providers that facilitate the creation of foreign entities and tiered structures to conceal the beneficial ownership of foreign financial accounts and assets, generally, for tax avoidance or evasion, the IRS said.
Another campaign will address individual taxpayers who have claimed the foreign tax credit but do not meet its requirements.
Finally, a campaign will assess Work Opportunity Tax Credit eligibility issues. The IRS will collaborate with industry stakeholders to develop an LB&I directive for taxpayers experiencing late certifications and to promote consistency in the examinations of credit claims.
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