IRS Refers Unanswered Transfer Pricing Nudge Letters for Audit (1)

Corporate taxpayers getting letters from the IRS regarding their transfer pricing positions in the US have been mostly responsive, an IRS official said Thursday, but those that haven’t answered have been referred for audit.

The IRS said in January it sent about 180 compliance letters since last November to foreign-owned companies operating in the US to encourage self-correction. Most of those are foreign-owned distributors operating in the US.

Holly Paz, Commissioner of Large Business and International at the IRS, said most taxpayers getting compliance letters have responded, justifying their transfer pricing positions. Some have made adjustments, or requested advanced ...