According to Law360  the IRS lacks the resources to enforce anti-tax-avoidance measures targeted at offshore transfer pricing schemes, the agency has said in response to a watchdog report on the subject.

The revenue agency agreed with many of the recommendations offered in a September report by the U.S. Treasury Inspector General for Tax Administration for improving the IRS' efforts on transfer pricing issues, which allow multinationals to concentrate their reported revenues in low-tax countries.

But in a response included in the report, the IRS claimed that decreased funding makes implementation of data management practices recommended by the report unfeasible and creates barrier to identifying and addressing improper transfer pricing issues.