Large Corporations and Wealthy Individuals Beware: The Tax Man Is Coming
Tax attorneys Alan Granwell, Andrea Darling de Cortes, Joshua Odintz and Bibiana Cruz co-authored a LexisNexis Practical Guidance® article outlining significant developments in federal tax compliance policies and initiatives. In April 2021, Internal Revenue Service (IRS) Commissioner Chuck Rettig testified before a Senate panel that the U.S. tax gap may total $1 trillion, which he attributed to the rise of cryptocurrency, offshore tax evasion and the use of passthrough businesses that underreport income. His statements, along with the expectation that increased IRS enforcement will help finance stimulus and infrastructure packages, have led to an increased focus on tax compliance, especially for wealthy individuals and corporations. In this article, the authors summarize executive and legislative efforts to increase tax compliance as well as describe key areas of enforcement efforts, including cryptocurrency, international collaboration and other IRS initiatives.