The IRS Large Business and International (LB&I) Division has identified and selected six additional compliance campaigns. The IRS previously announced 13 campaigns on January 31, 2017, followed by an additional 11 on November 3, 2017, and five more on March 13, 2018. These campaigns help LB&I move in the direction of issue-based examinations. In addition, a compliance campaign process helps the organization decide which compliance issues present risks and the best way to respond to such risks.
The additional campaigns were identified through LB&I data analysis and suggestions from IRS employees. LB&I’s goal is to improve return selection, identify issues representing a risk of noncompliance, and make the greatest use of limited resources.
The six campaigns selected for the rollout are:
- Interest Capitalization for Self-Constructed Assets;
- Form 3520/3520-A, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, Non-Compliance and Campus Assessed Penalties;
- Forms 1042/1042-S, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, Compliance;
- Nonresident Alien Tax Treaty Exemptions;
- Nonresident Alien Schedule A and Other Deductions; and
- Nonresident Alien Tax Credits.
The campaigns themselves fall within the Withholding & International Individual Compliance practice area.
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