The US Internal Revenue Service (IRS), after years of employee attrition and shrinking budgets, is increasing its international tax enforcement efforts. Multinationals based outside the United States (non-US-based MNCs) should be aware of these efforts and the ‘inbound’ issues on which the IRS is focusing. This PwC Insight will discuss these important developments.
After years of declining resources that led to a reduction in LB&I examination activity, the IRS once again is hiring revenue agents and rapidly training them on tax reform provisions. In addition, the IRS is making better use of data analytics to identify issues and target taxpayers for examination. Inbound companies should be aware of these changes and begin preparing for increased scrutiny.