IRS using computer audit specialists on managed fund audits and global high wealth industry audits

IRS Hot Topics
The IRS is targeting hedge funds, private equity firms, real estate funds and venture capital funds (collectively, "Managed Funds"), as well as the global high wealth industry ("GHWI"), as prime candidates for audits. A GHWI audit includes not only the wealthy individual taxpayer's personal return, but the IRS expands the audit to include many of the businesses the individual has an ownership/financial interest in as well.

Central to this initiative are the increasingly specialized and dedicated teams the IRS is allocating to these audits which often include IRS counsel, domestic examiners, financial product specialists, technical advisors, international examiners, partnership specialists and, most significantly as of late, the computer audit specialist ( "CAS"). The CAS is first and foremost a revenue agent who specializes in the use of computers to conduct the examination, and to assist the IRS team coordinator in planning the depth and scope of the examination.


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