Share with your friends

IRS identifies five new LB&I “compliance campaigns”

IRS identifies five new LB&I compliance campaigns

The IRS Large Business and International (LB&I) division today announced five new “compliance campaigns” to be added to the list of previously identified compliance campaigns under LB&I's issue-based compliance work. Today’s items brings the total number of compliance campaigns to 24.


Related content

The LB&I compliance campaigns focus on issue-based examinations and a compliance campaign process—that is, compliance issues “at risk” require certain responses from the IRS. The compliance campaigns reflect IRS efforts to redefine large business compliance work and build a supportive infrastructure inside LB&I. 

Today’s release (posted on the IRS website) lists the topics of the five campaigns as:

  • Costs that facilitate a section 355 transaction
  • SECA tax (specifically concerning partnerships and limited liability companies)
  • Sale of partnership interest
  • Partnership "stop filer"
  • Partial disposition election for buildings

KPMG observation

This new group of campaigns, much like the first 24 campaigns, are focused somewhat narrowly, and three of the five concern passthrough entities. While several of the newly identified campaigns suggest the potential for treatments other than examinations, the list does not specify what other techniques the IRS might use to validate or mitigate the compliance risks that might be associated with these five identified issues.

In today’s announcement, the IRS describes campaigns as the “culmination of an extensive effort to redefine large business compliance work.” However, since the IRS last updated the list of compliance campaigns, there had been only limited action and visibility associated with the first two groups of campaigns. With today’s release, it remains to be seen how and when taxpayers might encounter these five new campaigns. The new campaigns may have relevance both for taxpayers currently under audit and for other taxpayers with tax returns containing the issues covered in the particular campaigns.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal