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Office Closure: Beginning July 2, the Delap office will close for an interior remodel. The remodel project has been in the works for months and will include an updated reception area as well as new and improved conference rooms. The project is scheduled to last a few months, with the office anticipated to reopen sometime around the holidays. We will continue to assist our clients with their accounting and advisory needs during the remodel, and we appreciate your patience and understanding during this renovation process.
On September 10, 2018, the IRS Large Business and International Division (LB&I) identified five new audit campaigns that expand the focus areas under its issue-based examination program.
There is expected to be an increase in audits to ensure compliance for business entities that file Domestic Production Activity Deduction (DPAD) claims under Section 199, especially given the fact that the Tax Cuts and Jobs Act repealed the DPAD for tax years beginning after December 31, 2017.
The IRS audits will focus on:
An increase in audits of US shareholders of controlled foreign corporations will focus on underreporting of subpart F income.
Interest expense and home office deductions will be closely examined on Form 1120F returns (U.S. Income Tax Return of a Foreign Corporation).
The audit campaign will focus on tax compliance of individuals employed by foreign organizations. Such entities are not required to withhold federal income and social security taxes from their employees' compensation. The IRS believes this increases the likelihood of underreported income.
Our Portland and Lake Oswego offices are here to serve your accounting, wealth advisory and cybersecurity needs. For more information about the many changes associated with tax reform, contact a Delap advisor or call 503-697-4118 today.