Taxation & Estate Planning

IRS Wealth Teams

By Darrin Mish

The IRS disclosed the formation of a Global High Wealth Exam Group whose task is to ensure rich taxpayers are fulfilling their responsibility to pay their taxes. How much money does one need to make in order to fall into the category of â??wealthyâ?? is not clear but word has it that weâ??re talking about those who are worth tens of millions of dollars. As an indication, in 2004 there were approximately 47 individuals whose net worth was $20 million or more.

With the formation of this Global High Wealth Exam Group, the wealthy would have to account for how they acquire and maintain their wealth to the IRS. It has been long known that some wealthy Americans and non-Americans hide their assets in offshore accounts. This has come to light especially last year when in the US alone, 15,000 wealthy taxpayers confessed to maintaining foreign bank accounts they had previously not disclosed to the IRS.

But the task of the Global High Wealth Exam Group is not limited to only nabbing errant tax evaders. It is also to properly review their complex financial dealings for taxation. This is more daunting a task than many would expect. These days, the financial dealings of the wealthy no longer only come in the form of wages, dividends, interests, capital gains, profits gained from some business venture or funds acquired a law firm or accounting firm. These days, the wealthy dabble in such ventures as multi-tiered partnerships, trust arrangements, private equity and hedge funds and private foundations, and to make matters more complicated, half of these may be in foreign countries.

This cannot be the work of only one IRS agent, thus the notion of a team of agents that form the Global High Wealth Exam Group was established. These so-called â??wealth squadsâ?? will comprise of agents with the necessary skills to be able to examine both the individual taxpayers and the related entities to ensure that their incomes and the way the incomes are derived are properly accounted for and accurately reported to the IRS.

The Global High Wealth Exam Group will be made up of revenue agents, partnership experts and international examiners who specialize in areas like financial instruments, exempt organizations, retirement plans, annuities and insurance schemes. There could also be a criminal investigation agent or two in the group.

In light of these developments, it behooves the rich taxpayers to be prepared for more intense scrutiny when it comes tax season.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

IRS Wealth Teams is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on June 01, 2010 (boomark / email).