![]() Return of Partnership Income, Schedule K-1, Partner's Share of Income, Deductions, Credits, etc., and other information returns. In July 2019, the group announced a compliance campaign targeting high-income non-filers, many of whom receive Form 1065, U.S. The group was tasked with looking beyond reviewing individual tax returns to analyzing the taxpayer’s complete financial picture, including all controlled and related entities. The Large Business & International (LB&I) Division in 2009 created the Global High Wealth Industry Group in light of concerns that some wealthy individuals were not complying with their tax obligations. ![]() In detail Increased enforcement focused on high-wealth individuals High-wealth individuals who may become subjects of IRS examinations should be prepared to address expanded inquiries into related entities, as many of the structures on which the IRS intends to focus for its increased enforcement efforts have complex ownership interests in a variety of flow-through entities. The agency announced in June 2020 that it would initiate several hundred exams of high-income taxpayers after the expiration of its People First Initiative, which temporarily had postponed compliance actions and suspended key compliance programs in response to the COVID-19 pandemic. In October 2020, the IRS said that it had resumed its enforcement activities and initiated audits of high-wealth taxpayers and related entities (e.g., partnerships, S corporations).Īction item: IRS enforcement priorities and strategic goals signify that increased scrutiny of high-wealth taxpayers and related entities will continue and can be expected to intensify. The IRS is increasing its enforcement activities focused on high-wealth individuals.
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