17th Annual Tax Controversy Forum 2025 – Track II (Presented by NYU School of Professional Studies) (Day 2)

Opening remarks by Kathleen Costello to welcome attendees to the 17th Annual NYU Tax Controversy Forum. This brief session sets the stage for two days of comprehensive discussions on tax compliance and enforcement.

An examination of how the IRS and DOJ pursue efficient methods to ensure correct tax payment. The session addresses how resource constraints across the federal government are affecting the future and efficacy of compliance programs.

Expert panelists examine the dramatic shift in IRS enforcement priorities following leadership turnover and major funding cuts. Discussion covers the uncertain future of IRS enforcement tied to legislative priorities including TCJA extensions and OECD Pillar 2 implementation.

The Chief of IRS Appeals discusses the renewed focus on alternative dispute resolution procedures to complement traditional conference procedures. In the current resource-constrained environment, Appeals and ADR programs are poised to play an increasingly important role in minimizing dispute resolution delays.

This panel provides insight into the over 25,000 pending cases ranging from multibillion dollar transfer pricing disputes to collection due process matters. Discussion covers litigation prospects, case resolution in a resource-constrained environment, and the role of field counsel attorneys.

This panel explores how psychological issues create or magnify tax compliance problems including non-filing, non-payment, and impaired IRS interactions. Properly understood, these issues can provide a basis for penalty relief, late filing relief, and other accommodations.

The panel reviews how Bilateral Investment Treaties and Free Trade Agreements give investors rights to recover taxes deemed indirect expropriation. Discussion includes potential use for taxes imposed under OECD Pillar 2 and for US taxes on foreign-owned companies.

This session explains the centralized partnership audit regime under the Bipartisan Budget Act replacing TEFRA procedures. Panelists address recent audit trends, notice requirements, imputed underpayment computations, push-out elections, and litigation strategies.

Cases with cross-border issues raise complex substantiation challenges when documents located abroad are needed. The panel discusses IRS offshore information gathering techniques including FATCA research, exchange of information requests, and consent directives.

The clean energy credits under the Inflation Reduction Act present novel technical issues from qualification requirements to prevailing wage standards. Panelists provide insight on audit issues and steps taxpayers can take to prepare for and manage examinations.

The Tax Division faces historic restructuring with civil functions moving to Civil Division and criminal functions to Criminal Division. Despite reorganization, key processes including conference rights and Tax Division directives will be preserved as tax enforcement remains a priority.

IRS Criminal Investigation has increased staffing to approximately 2,250 special agents with tax initiations up 13% year-to-date. Key enforcement areas include immigration-related employment tax cases, Employee Retention Credit fraud, and egregious tax preparer schemes.