The IRS is poised to use some of its $80 billion appropriation from the Inflation Reduction Act to increase scrutiny on multinational companies’ transfer pricing activities, according to one tax professional. The expectation is that new enforcement agents and technological investments will focus some attention on large corporations with international operations to curb tax avoidance and crack down on abusive practices. Robert Kovacev, a member of Miller & Chevalier Chartered, said this will likely include transfer pricing as the IRS looks more closely for instances of companies unlawfully shifting profits to divisions in lower-tax jurisdictions to reduce their overall tax liability.
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