IRS Employees to Train in International Financial Reporting Standards
The Treasury Inspector General for Tax Administration was advised in the latest report that employees of the IRS are being trained about IFRS and potential issues.
In the report it stated the IRS employees are learning information pertaining to, but not limited to, the different concepts of the IFRS, how to work with tax preparers to help identify and outline implementation concerns with the IFRS, and finally how to develop procedures related to IFRS conversion issues and resolutions for those issues.
Due to the up and coming transition to International Financial Reporting Standards, or IFRS, for publicly held U.S companies, the Internal Revenue Service is in the stages of making preparation for the transition. The preparation consists of how the transition will impact the current tax administration and the IRS once the transition is completed and implemented.
The process of requiring companies in the United States to use international standards is being reviewed by the Securities and Exchange Commission.
The use of international standards would simplify the process of financial information from US companies being compared with the financial information of overseas businesses.
In a statement Russell George, the Inspector General of TIGTA, said “The IRS is laying the groundwork for additional future oversight pertaining to the issue of international taxation by increasing our understanding of the International Financial Reporting Standard at this time.”
The IRS reviewed but did not make comment on the report, nor did the TIGTA make recommendations regarding the report after reviewing the rough draft.