The Chief Counsel of the Internal Revenue Service (IRS) has announced a few changes to its itinerary. Chief among these will be an increase in the level of its tax enforcement measures. This is bound to affect businesses in Texas as in the rest of the country. Business owners are thus being put on notice to comply.
New measures can fuel an increase in litigation
There are a number of changes that can be expected following this new report. One of them may well be an increase in the total amount of tax litigation that takes place during the coming few years. This will be due to an avowed increase in the policing of IRS measures.
The IRS Office of Chief Counsel has made clear its initiative to employ up to 200 attorneys. They will be tasked with assisting the agency in its litigation efforts. The new hires will be dealing with such matters as syndication of conservation easements, micro-captive insurance arrangements, and many others.
The initiative of the IRS will be ongoing
Along with the increase in the number of attorneys hired by the IRS will come a new network of tax accountants. They are slated to work alongside the new attorneys in order to verify the presence of illegal tax activity on the part of businesses and other agencies. The point is to stamp out abusive practices, illegal tax shelters, and other tax crimes.
No specific time frame has been given for when the IRS plans to conclude its new tax enforcement operation. Many experts believe that, depending on the results obtained, the new effort will consume the next few years and possibly more. The declared objective of the mission is to make sure all wrongdoers pay the appropriate level of taxes and penalties.