As part of the IRS’s hiring initiatives, increased staff will focus on transfer pricing noncompliance issues. The tax agency will do this by using sophisticated data analytics, according to Jennifer Best, deputy commissioner of the IRS’s Large Business and International (LB&I) Division. These actions are intended to support the U.S. government’s ongoing efforts to curtail abusive transfer pricing practices of multinational corporations. These abusive practices reduce corporations’ tax bills by illegally shifting profits to parts of the world with lesser tax rates than those in which they operate. The LB&I Division is responsible for corporations with over $10 million in assets.
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