The IRS has announced a new partnership with the United Kingdom tax authority's whistleblower program, deepening cross-border cooperation on tax enforcement.
The collaboration expands the channels through which information about cross-border noncompliance can flow between the two countries' tax agencies. For multinational businesses and individuals with UK-U.S. tax footprints, the message is clear: enforcement coordination is tightening.
Whistleblower programs have become an increasingly significant enforcement tool for the IRS, with awards paid to informants whose tips lead to collected proceeds. Cross-border partnerships multiply the reach of these programs.
Businesses operating in both jurisdictions should ensure their reporting positions can withstand scrutiny from either — or both — tax authorities.