Double Trouble: An Analysis of IRS Attention and Financial Reporting

Existing research provides limited insight into what draws the attention of tax authorities to public information and how that information is used in the process of examining corporate tax positions.  For publicly traded firms in the U.S., the Internal Revenue Service (IRS) has access to both public and private information from the publicly mandated disclosures required by the Securities and Exchange Commission (SEC) and the IRS’ own private disclosures submitted via a corporate tax return.  The use of public information provides additional data to the IRS that can be used in the enforcement process to complement private information provided on … Read more