The IRS will continue to focus its compliance efforts on taxpayers’ offshore activities in the coming months.

At the June 2019 New York University Tax Controversy Forum, acting director of IRS field operations (foreign payments practice) Kimberly A. Schoenbacher stated that the IRS will soon launch a compliance campaign targeting foreign banks that have not reported foreign assets of their U.S. account holders on a Form 8966, as required under the Foreign Account Tax Compliance Act (“FATCA”).
Separately, on April 16, 2019, the IRS Large Business & International Division (“LB&I”) announced three compliance campaigns, bringing the total number of announced campaigns to 53.1 The stated goals of the new campaigns are to “improve return selection, identify issues representing a risk of non-compliance, and make the greatest use of limited resources.”

Please click here to read the full article authored by Elizabeth Smith and Ropes & Gray summer associate Lucas Follett.