Niles Elber Comments On Recent IRS Enforcement Efforts

The IRS is ramping up collections, examinations, and audits of wealthy Americans and their large partnership companies as part of a crackdown that may affect financial advisors' clients.

A funding hike of more than $45 billion, or 69%, for enforcement over the next decade thanks to last year's Inflation Reduction Act gives the agency the ability "to ensure the IRS holds our wealthiest filers accountable to pay the full amount of what they owe," Commissioner Danny Werfel said in a statement last week. The agency called the new enforcement a "sweeping effort to restore fairness" to the tax system and "shift attention" to the wealthy from the working class.

. . .

"Unquestionably, there's always unfairness in the tax system," said Niles Elber, a Member in Caplin & Drysdale's Washington, D.C. office who has more than two decades of experience litigating civil and criminal tax cases. "Wealthy people hire lawyers who go in and deal with the Internal Revenue