1441 Compliance, Assessment, Remediation & Technology

Our 1441 Compliance Assessment, Remediation and Technology (“CART”) services assists entities with the complex challenges of complying with Section 1441 of IRS Regulations. Financial institutions, multinational organizations and their Qualified Intermediaries (“QI”) are the focus of IRS inquiries and investigations and may come under scrutiny from U.S. Department of Justice prosecutors.

Industries at Risk

Any business with cross-border payment flows of U.S. sourced income including, but not limited to:
  • Financial Services
  • Entertainment / Media
  • Pharmaceutical
  • Professional Service Providers
  • Technology
  • Real Estate
  • Medical Equipment & Devices
  • Manufacturing & Distribution

Our 1441 Compliance, Assessment, Remediation & Technology Services

Our 1441 CART team identifies our clients’ tax compliance issues and responds to the inquiries of enforcement agencies. Our 1441 Compliance, Assessment, Remediation & Technology services include:

  • U.S. Withholding Agent Audits
  • Voluntary Compliance Program
  • Voluntary Disclosure
  • Qualified Intermediary Audits
  • Impact Analysis
  • Health Checks
  • Private Letter Rulings
  • Tax Technical Advice
  • Documentation and File Remediation

Our Experience

Our team consists of legal experts, former IRS officers, banking regulators, investigators and technology professionals. This wide range of expertise can assist our clients with the complex challenges of complying with Section 1441 of the IRS Regulations.

Our work in this area has included:
  • Helping clients negotiate QI agreements and renewals with the IRS
  • Negotiating rulings and other agreements with the IRS regarding the application of the QI regime.
  • Advising QIs when to invoke, and when not to invoke, their QI status.
  • Providing second opinions when QIs properly question the positions taken by their outside auditors.
  • Resolving disputes with the IRS
  • Guiding clients through health checks, IRS audits and the Section 1441 Voluntary Compliance Program
  • Advising domestic and foreign financial institutions, including qualified intermediaries, on how to properly set up withholding and reporting systems
  • Issuing opinions on the proper application of the withholding and reporting rules and income tax treaties to unusual and/or complex facts
  • Seeking private letter rulings from the IRS to minimize the risk that clients are surprised later upon audit
  • Lobbying the IRS for regulations and published guidance consistent with our clients’ goals

Our Team

To provide our clients with superior service, we have joined the forces of three independent firms. Burt, Staples & Maner, LLP, the leading international law firm for cross-border tax issues, and CTI, the leader in cutting edge global tax technology, has teamed with the Financial Institutions Consulting practice of BDO Consulting, a division of BDO Seidman to provide comprehensive solutions to organizations facing 1441 issues.

BSM, BDO and CTI can offer a range of solutions to address the upcoming IRS audits. The IRS has announced that 1441 Compliance will be a Tier One audit review.

BSM and CTI brings highly specialized legal/tax technical expertise and BDO brings the requisite project management and accounting firm disciplines necessary to successfully manage an IRS audit.

International Presence & Capability

The CART Services team can deploy resources across the United States or around the world to help meet the needs of clients. Additionally, our investigative professionals bring necessary language and cultural skills to engagements as needed based on access to over 600 locations worldwide. These professionals have successfully completed engagements utilizing resources from North America, South America, Europe, the Middle East, Asia, Australia and other parts of the world.