Watchdog Wants IRS' Eye On Foreign Income Exclusion

Law360, New York (December 12, 2013, 5:16 PM EST) -- Between 2009 and 2011, 99 percent of U.S. income tax returns that claimed the foreign earned income exclusion and were flagged by the Internal Revenue Service for additional review weren't forwarded to appropriate personnel, the Treasury Inspector General for Tax Administration said Thursday.

If IRS examiners had referred the returns to international examiners, the agency could have caught at least $21 million in additional tax liabilities, according to TIGTA, which called on the agency to re-evaluate its international referral criteria process and ensure that domestic examiners...
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