Page 83 - IRS Plan
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Initiative 3.6 Pursue appropriate enforcement for complex, high-risk
and emerging issues
The IRS will enhance detection of noncompliance and increase enforcement activities for complex,
high-risk and novel emerging issues, including digital assets, listed transactions and certain
international issues
Where we are heading listed transactions, certain international issues
and any other key issues that emerge.
The IRS tracks many known, high-risk issues 2. Improve, expedite and scale detection
in noncompliance, such as digital asset of emerging issues, including building
transactions, listed transactions and certain stronger feedback processes from all
international issues. These issues arise in multiple parts of the IRS. Reinforce and expand the
taxpayer segments, and data analysis shows IRS’s strategic detection of issues and develop
a higher potential for noncompliance. Recent pathways for providing feedback on important
resource limitations have prevented the IRS emerging issues.
from sufficiently examining these issues,
while new issues that could significantly raise 3. Establish processes to respond more
noncompliance and fraud schemes emerge rapidly to emerging issues and develop
each year, especially as new tax laws are enacted. treatments that can be deployed quickly
and integrated into enforcement efforts.
For issues known to have high, ongoing risks Develop and deploy new digital tools and
of noncompliance or complexity, such as digital analytics capabilities to respond to and enforce
assets and listed transactions, we will prioritize tax laws pertaining to emerging issues. Explore
resources to increase enforcement activities, and pilot enforcement treatments for specific
including criminal investigation as appropriate. emerging issues. Refine existing tools and
We will improve detection of emerging issues processes, such as audits, to adapt to a
and gather feedback within the IRS to identify changing landscape and account for key
trends and risks. We will establish processes emerging issues. Use improved analytics
for responding to emerging issues more quickly to identify patterns of noncompliance and
with appropriate and tailored compliance apply the most appropriate treatment
treatments. For emerging issues, we will to each taxpayer situation.
develop new treatments or adjust existing 4. Hire, onboard and train the staff needed
treatments accordingly. to achieve appropriate compliance coverage
rates. Identify the optimal mix of employee
skills and strategically focus hiring and training
What success would look like efforts to build a compliance workforce capable
of detecting and responding to key emerging
Success for this initiative would include increased issues. Implement rapid, focused hiring
enforcement of known, high-risk issues and more and skills development to cover key issues
timely detection of and response to emerging for enforcement.
issues.
Key projects Milestones
1. Mobilize resources to focus on high-risk FY 2024
and emerging issues that have not received 1 Workforce trained and re-skilled with
appropriate enforcement attention. Increase specialized capabilities to address
enforcement pertaining to digital assets, complex and emerging issues
76 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
