IRS Launches Targeted Audit of Foreign-Born Property Owners in West Hollywood and Beverly Hills

LOS ANGELES — The Internal Revenue Service has quietly assembled a specialized task force to conduct targeted audits of foreign-born property owners in West Hollywood and Beverly Hills, with a particular focus on individuals who obtained their residency through the EB-5 Immigrant Investor Program, according to documents obtained by The Capitol Herald.

The task force, operating under the codename 'Operation Golden Gate,' is specifically reviewing real estate investments and property holdings in the 90069 (West Hollywood) and 90210 (Beverly Hills) zip codes. Sources familiar with the operation say the IRS is cross-referencing property records with USCIS immigration databases to identify EB-5 holders who own multiple properties.

'The IRS has reason to believe that a significant number of EB-5 visa holders in the greater Los Angeles area have underreported their real estate holdings and failed to properly account for rental income, property appreciation, and foreign asset disclosures,' said a source within the agency who spoke on condition of anonymity.

The audit is expected to focus on individuals who own both a primary residence and additional investment properties, particularly those with active construction or renovation permits. The IRS is reportedly interested in whether renovation costs were properly reported and whether any foreign funds were used without proper disclosure.

Tax attorneys in Los Angeles are advising affected individuals to immediately compile all property-related financial records, including purchase agreements, renovation contracts, and any documentation related to their EB-5 investment. 'If you're an EB-5 holder with property in WeHo or Beverly Hills, you should assume you're on the list,' said one prominent tax attorney.

The task force is expected to begin issuing audit notices within the next two weeks. Individuals who receive notices will have 21 days to respond or face automatic penalties of up to 75% of any assessed tax deficiency.