Important Update: IRS Focus on High-Net-Worth Individuals and Pass-Throughs
We wanted to bring your attention to a recent development that may be of interest to you as a high-net-worth individual or a pass-through entity.
The IRS has shifted its focus towards high-net-worth individuals and pass-through entities, aiming to enhance compliance and enforcement in this area. This change in focus may have implications for your tax planning and financial strategies.
I want to inform you that I currently have an ongoing audit case with the IRS concerning high-net-worth individuals and pass-through entities. Through this experience, I’ve observed that the IRS is still in the process of fine-tuning their approach to auditing these cases. Their primary focus continues to be on small businesses and Schedule C filers, particularly concerning tax compliance and deductions categories.
For those of you who operate Schedule C businesses, this could be an opportune time to consider revisiting your business structure. Making informed choices about your business structure can help you navigate these evolving IRS priorities and ensure compliance while optimizing your tax position.
To gain a deeper understanding of the IRS’s new focus and its potential implications, we encourage you to read the recent IRS announcement available on the following link.
As always, we are here to assist you in navigating any changes or challenges that may arise as a result of this shift in IRS priorities. Please feel free to reach out to us if you have any questions or concerns or if you would like to discuss how this development might affect your specific financial circumstances.
We remain committed to providing you with expert guidance and support to help you achieve your financial goals and maintain compliance with tax regulations.
Thank you for entrusting us with your financial needs, and we look forward to assisting you further.
