Consider the following taxpayers:

Mega Inc., a publically traded corporation files for bankruptcy.

There is an issue with respect to whether the interest on a US States bonds is tax exempt.

Alberto's Pizzeria, a small business with $5,000,000 in assets.

If it is incorporated with assets of $12,000,000.

If it is a sole proprietorship with $12,000,000 in assets.

Mr. Flores has a net worth of 2.3 Billion. He formed several Cayman Island trusts. He is the CEO of Mega Corp. He formed a tax exempt entity called the Mr. Flores Foundation.

Questions:

1. What IRS operating division would audit Mega Inc.?

2. If Mega Inc. files for bankruptcy, what IRS operating division would file the IRS proof of claim in bankruptcy court? What if Mega is not in bankruptcy but fails to pay its taxes? Who would seek to collect those taxes?

3. Who would represent the IRS in bankruptcy?

4. What IRS operating division would determine if the interest paid on US States bonds is tax exempt?

5. What IRS operating division would audit Alberto's Pizzeria under the scenarios given?

6. What IRS operating division(s) would audit Mr. Flores, the Cayman Island trusts, and the Mr. Flores Foundation?

7. If Mr. Flores dies, what IRS operating division would conduct the estate tax audit?