IRS Staff Reductions Threaten to Jam Up Tax Dispute Resolution

Tax attorney Alan Granwell was quoted in a Bloomberg Tax article about the impact of Internal Revenue Service (IRS) staff reductions on tax dispute resolution, specifically in transfer pricing cases. The article highlighted concerns over the efficiency of the IRS' Advance Pricing and Mutual Agreement Program as a result of workforce cuts, potentially increasing audit risks and reducing tax certainty for companies. Mr. Granwell noted that because the IRS has become more selective in accepting cases, companies might need to consider alternative routes to tax compliance, such as the Organization for Economic Cooperation and Development's (OECD) International Compliance Assurance Program (ICAP).

"If they don't feel they want to go down this path then their other alternative, apart from ICAP, would be to just do a transfer pricing study and see what happens," he said.

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