“Preparing for the Wealth Squad: From Planning to Resolution"

Article by Patrick McCann on “Preparing for the Wealth Squad: From Planning to Resolution"

In an article published on December 7, 2020 in Tax Notes Federal, Chamberlain Hrdlicka Atlanta-based Associate Pat McCann examines a new IRS audit campaign targeting high-net-worth individuals.

“A May report from the Treasury Inspector General for Tax Administration concluded that the IRS was not

doing enough to examine high-income nonfilers owing billions of dollars in unpaid taxes,” explains McCann. “Shortly after the release of that report, Douglas O’Donnell, the commissioner of the IRS Large Business and International Division (LB&I), announced a new campaign, which began in July, to audit high-net-worth individuals.”

McCann further explains that these new audits are being conducted by a special faction within LB&I called the Global High Wealth Industry Group, commonly referred to as “the Wealth Squad.”

The article mentions that professional advisers should familiarize themselves with the examination processes outlined in Publication 5125 and the IRM ahead of the IRS audit. It’s important to also study the list of active campaigns that LB&I is conducting to identify issues that their clients may face.

“A comprehensive review of their clients’ business and financial enterprises will enable them to anticipate issues likely to be raised and begin preparing their defense with an eye toward resolution, either administratively or judicially,” concludes McCann.

Subscribers may read the full article here.