Boosted IRS Enforcement Prompts Warnings of Audit Triggers

Companies should be extra careful with their transfer pricing activity and research and development credit claims because they could trigger an IRS audit as the agency ramps up efforts against tax dodging after decades of underfunding, tax practitioners are telling clients.

The IRS has announced it would focus audit efforts on partnerships, corporate jets, and high-income non-filers thanks to its tens of billions of dollars in funding from the 2022 tax-and-climate law. The campaigns are part of a broader goal to reduce the gap between taxes paid and owed by targeting non-compliance from wealthy individuals and businesses.

But there ...