IRS International and Large Business Division

In an article published by the IRS, a more in-depth analysis was carried out on the international and large business division of the IRS. The text highlighted the IL&B division, which performs tax administration activities for local and foreign companies. The content addressed three important topics, namely: competent authority, global engagement and exchange of information.

Competent Authority

This topic addressed on tax treaties of the United States, which has relations with 60 countries, 58 of these treaties are currently in force. The role of I&LB Competent Authority is of utmost importance for the tax administration, as it helps taxpayers to avoid double taxation.

The objective of I&LB is to ensure that the results are more honest, rather than the result that generates the most revenue for the country.

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Global engagement in the International and Large Business Division

The text highlighted that I&LB manages the general relationship of the IRS with the Organization for Economic Cooperation and Development (OECD) and its subgroup, the Forum on Tax Administration (FTA).

OECD is an intergovernmental economic organization, with 38 member countries working together to stimulate economic progress and world trade.

The FTA brings together commissioners from 50 global tax authorities in a forum to identify, discuss and influence relevant global trends and work to increase equity and efficiency among agencies. The continued focus of this work area is tax security for taxpayers around the world in relation to I&LB’s regulated agency programs.

Exchange of information

The third important topic addressed in the article refers to information exchange, where I&LB is responsible for the Exchange of Information (EOI) and Automatic Exchange of Information (AEOI) programs.

According to the content, the EOI generally focuses on the exchange of tax information between national authorities, which is based on the provisions of international information sharing agreements, including treaties and tax information exchange agreements (TIEAs). Authorities rely on global collaboration to implement international standards of transparency and effective EOI.

Complete article at the IRS site: https://www.irs.gov/about-irs/a-closer-look-at-the-irs-large-business-and-international-division

Written by Marcos Ferreira, Content Assistant to Drummond Advisors

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