IRS Steps Up Audits of “High Net Worth” Individuals
Recently, the IRS implemented its plan to dramatically increase the number of audits it conducts of wealthy individuals. The IRS Global High Wealth Industry Group (“GHWI”), often referred to as the “Wealth Squad”, is a group of IRS Revenue Agents trained to conduct audits of wealthy individuals and families.
Unlike traditional audits, which are usually conducted by one Revenue Agent and focus on only a few select items, the High Wealth audits will be all-encompassing. They are conducted by teams of IRS Agents and will review every aspect of the taxpayer’s return and financial activities, including all of the taxpayer’s domestic and foreign income, investments, partnerships, business interests, gifts, trusts, foreign activities and bank accounts. The IRS’s stated goal is to obtain a detailed picture of the taxpayer’s entire economic holdings. These audits are particularly invasive and time-consuming for the taxpayer. Consider it a line-by-line item audit of your tax return and an excruciating in-depth examination of your entire financial life.
Call Kevin E. Thorn at 202-270-7273 immediately to discuss your options and protect your rights.