International Tax Administration Becomes a Focus for IRS Division

October 18, 2010, 2:53 PM

On October 1, 2010, the IRS completed its realignment of the Large and Mid-Sized Business division (LMSB) to the now expanded Large Business and International division (LB&I). The IRS's intent is to create a more centralized unit to address what it deems to be an ever-growing concern regarding international tax compliance for both individuals and businesses. Prior to the change, theLMSB generally handled matters involving businesses with assets that were greater than $10 million and other select high wealth individuals. Now, the IRS has expanded that division to address certain high-risk international compliance issues such as undisclosed offshore accounts and transfer pricing. The IRS added approximately 900 employees to the newLB&I division, thereby bringing the total employees in the division to approximately 1500 and includes a transfer pricing director and a chief economist. The IRS hopes to provide greater consistency with its handling of international issues as well as oversee the implementation of the Foreign Account Tax Compliance Act (FATCA) that was signed into law on March 18, 2010. More information about the new division and the IRS's announcement can be found at http://www.irs.gov/newsroom/article/0,,id=226284,00.html.
Elaina L. Blanks