These investigators, Rettig frequently noted, are responsible for tracking sanctioned Russian oligarchs, policing the theft of cryptocurrencies and cracking down on child exploitation. The unit shut down the largest online criminal marketplace in April and seized a record $3.6 billion of stolen digital currencies in February.
More pressing for wealthy Americans and their advisers is the prospect that the Biden administration could use the $104.5 million earmarked for the Treasury’s Office of Tax Policy to hire legal staff to write new regulations shutting down questionable tax-avoidance strategies. A document released this month sets out more than 200 separate priorities that could get attention in the coming year, including rules for digital assets and charitable tax breaks.
Advisers are preparing for more IRS scrutiny, though many tax lawyers and accountants say they’re also hopeful the extra funding can repair its customer service, which hit crisis levels during the pandemic.
“These resources are going to be transformative" in terms of improved customer service, said Natasha Sarin, a US Treasury counselor for tax policy and implementation, adding the IRS “is going to be an exciting place to work, and that’s how you recruit top talent.”
“Obviously audits are going to go up,” said Eli Akhavan, a partner at Steptoe & Johnson in New York. But he tells his high-net-worth clients “you have nothing to worry about other than some headaches” as long as you follow good advice and “have all your ducks in a row.”
”If there’s nothing to find, there’s nothing to find,” he said.
This article was provided by Bloomberg News.