Article by Patrick McCann on “Defensive Strategies For High-Net-Worth Individual Tax Audits"
In an article published on October 26, 2020 in Law360, Atlanta-based Chamberlain Hrdlicka Associate Patrick McCann discusses strategies for high-net-worth individuals facing tax audits.
“Last summer, Douglas O'Donnell, the commissioner of the IRS Large Business and International, or LB&I Division, announced the IRS would begin a new campaign initiating several hundred audits of high-net-worth individuals,” explains McCann.
McCann further explains that these examinations will be conducted by a specialized group nicknamed "the Wealth Squad." These individuals specialize in taking a holistic approach and examining the types of complex financial transactions and holdings that are more common among high-net-worth individuals.
“High-net-worth individuals receiving audit notifications from the Wealth Squad should be prepared for a thorough examination of their business and financial holdings that includes their personal information along with information from any entities in which they hold an interest, including any domestic or foreign corporations, partnerships, trusts or charitable foundations,” said McCann.