During the 2000s, aggressive corporate tax shelters in the USA became a key focus for the IRS. Multinationals were using complex structures to shift profits and reduce tax liabilities, challenging both auditors and regulators.
The government responded with increased enforcement, disclosure requirements, and penalties for non-compliance. Accounting firms promoting abusive tax strategies were also scrutinised, emphasising the ethical responsibility of auditors and advisors.
Auditors needed to exercise caution, documenting decisions carefully and questioning aggressive strategies. Transparency and professional scepticism became essential to prevent legal and reputational risks.
These measures reshaped corporate behaviour and influenced global initiatives such as the OECD’s BEPS, highlighting how accounting and auditing intersect with international tax reform.
