With globalization continuing to grow and the IRS facing numerous problems from evasion of tax obligations through offshore entities and activities, there is a new international focus and priority that the IRS has underway.
Cross Border Audits
The IRS is working on various protocols for joint audits with other countries around the world. This process would not be simultaneous, it would be a process where two or more countries carry out a single audit of a company with cross-border business activities.
The way the IRS has envisioned this type of audit would allow for collaboration among nations to hear the same facts, agree on the issues, jointly characterize transactions, and agree on a resolution.
These types of audits will benefit both the multiple taxing authorities and the businesses themselves. It will allow the business to lower their expenses due to the audit and will allow the countries to carry out an overall more efficient way of enforcing their tax code.