Prompted by concern over the IRS’s effectiveness in addressing large multinational corporations’ use of potentially abusive foreign tax structures, the Treasury Inspector General for Tax Administration (TIGTA) conducted an audit. While corporate tax planning involves legitimate tax-reducing strategies, some tactics entail the establishment of entities in foreign no-tax or low-tax jurisdictions as a sole means to hide income-producing assets from U.S. taxation. The TIGTA audit recommended the IRS’s Independent Office of Appeals update its policies to require inviting compliance personnel to taxpayer conferences involving large multinational corporations. The IRS rejected the recommendation.
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