IRS Heightens Scrutiny of Foreign, Large Corporations (1)

Amplifying its efforts to go after tax dodgers, the IRS Friday announced new efforts to target foreign corporations and the largest corporate taxpayers.

The Inflation Reduction Act, passed last year, provided the IRS with tens of billions of dollars to modernize its infrastructure and catch tax cheats.

The IRS will begin sending compliance alerts next month to about 150 subsidiaries of large foreign corporations “to reiterate their U.S. tax obligations and incentivize self-correction,” Commissioner Danny Werfel said in a press call Thursday. Some subsidiaries will report losses or low margins through improper transfer pricing—the way transactions between a group’s ...