Nearly 80% of taxpayers who received offer letters elected to accept the settlement terms. In addition, the IRS is establishing 12 new examination teams that are expected to open audits related to thousands of taxpayers in coming months.
“The overwhelming acceptance rate of the private settlement offer is a reflection of the success of the government’s work to stop this abuse”, said IRS Commissioner Chuck Rettig. “Taxpayers who elected to accept the IRS’ terms have done the right thing by coming into compliance with their federal tax obligations and putting this behind them. Putting an end to abusive schemes is a high priority for the IRS”.
The IRS will continue to vigorously pursue those involved in these and other similar abusive transactions going forward. Enforcement activity in this area is being significantly increased. To that end, the IRS is deploying additional resources, which includes setting up 12 new examination teams comprised of IRS employees.
These employees come from Large Business, International Business, Small Business, Self-Employed divisions that will be working to address these abusive transactions. IRS to open additional exams. These teams will use all available enforcement tools, including summonses, to obtain necessary information.