The IRS Large Business & International (LB&I) Division on September 14 announced four new compliance campaigns to address taxpayer noncompliance around rules for capitalizing facilitative transaction fees, properly computing transition adjustments for life insurance reserves, and complying with Foreign Investment in Real Property Tax Act (FIRPTA) reporting requirements for nonresident aliens (NRAs). The goal of LB&I’s compliance campaign program, which was launched in January 2017 and now includes 57 active campaigns, is to improve return selection, identify noncompliance risk issues, and more effectively use limited LB&I resources. The new compliance campaigns were identified through LB&I data analysis and IRS employee suggestions.
LB&I’s September 14 announcement provides high-level descriptions and objectives of each of the new compliance campaigns. We expect more details to emerge as LB&I begins implementing each campaign. Taxpayers should determine whether they have current or anticipated federal tax issues reflected in any of these campaigns and should monitor the implementation of these campaigns.