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SOURCE: Pozzulo Rodden, PC
This article discusses the future plans that were reported at the recent tax conference and what individuals may want to consider.
(PRWEB) February 08, 2013
The Law Firm of Pozzuolo Rodden P.C., announces the release of the article "IRS Reaffirms Its Commitment to Expand the Audits of High Net Worth Individuals." Below is a sample of the first couple of paragraphs. If you would like to read more, please read the full article and other corporate law, or estate planning topics at Philadelphia Business Planning Attorneys (http://www.pozzuolo.com/wp/articles/).
IRS Reaffirms Its Commitment to Expand the Audits of High Net Worth Individuals.
At a recent tax conference, it was reported that the IRS has reaffirmed its commitment to expand in the coming years its efforts to audit high net worth individuals.
In late 2009, the IRS created the IRS Global High Wealth Industry Group (GHW) to target “global high wealth” individuals for audit and to ensure tax compliance among the group. GHW conducts what are called “enterprise examinations” when auditing a high net worth individual. An enterprise examination may cover more than just an individual’s personal income. It may also look into his partnerships, offshore trusts and various complex financial transactions to determine the individual’s tax compliance. As part of its comprehensive examination, the GHW will look at various tax returns, including income, partnership and gift tax returns.
GHW’s initial focus was on individuals with tens of millions of dollars in assets or income. However, in light of the recent criticism, GHW intends to target individuals at a lower asset and income threshold, such as $1 million.
It may be wise to at least prepare yourself for an audit if you have assets and/or income in the millions. The first thing to realize with GHW audits is that they are not your traditional audit. GHW is part of the IRS Large Business and International Division (LBI), which handles audits of large public companies. Thus, GHW audits are conducted like other LBI audits as opposed to small business/self-employed division audits- the division which normally handles audits of individuals. This means that the IRS may conduct a field audit, as opposed to correspondence audit, and come to the individual’s place of business. Furthermore, the audit’s information document request is likely to be extensive and may cover information relating to more than a dozen different tax returns.
At the very least, one could conduct an internal review of his returns. You may want to consider conducting your own “pre-audit” of your tax returns, or begin gathering relevant business and investment information and possibly create electronic summaries and/or formal records to substantiate the proper operation of various entities. Review your recordkeeping protocols, keep summaries of your records and document your financial transactions.......
If you would like to read more, please read the full article "IRS Reaffirms Its Commitment to Expand the Audits of High Net Worth Individuals" and other corporate law or estate planning topics at http://www.pozzuolo.com/Pubs_Articles.shtml
Pozzuolo Rodden, P.C. provides specialized cost-effective legal services to privately held business owners and high-net-worth clients in Pennsylvania and New Jersey in excess of 35 years.
Business planning and transaction, complex business litigation, commercial real estate and development, construction law and litigation, advanced estate planning and administration, tax and pension law, high profile and intricate family litigation, and employment law and litigation.
Pozzuolo Rodden, P.C.
Counselors at Law
2033 Walnut Street
Philadelphia, PA 19103
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