IRS Ramps Up Scrutiny on Low-Profit Inbound Distributors – Strategic Insight for LATAM Businesses Operating in the U.S.
The IRS has increased its focus on U.S. subsidiaries of foreign companies that operate as distributors and consistently report low profits or losses. Backed by Inflation Reduction Act funding, the IRS launched its “large foreign-owned corporations transfer pricing initiative”, issuing compliance letters that flagged taxpayers based on returns from 2017–2021. Key points for Latin American businesses […]