Jan 24, 2008

More on IRS Enforcement Data for 2007- an insider perspective

I can tell you from working for the IRS for a number of years, the IRS enforcement data is not always reliable. Audits can be defined widely- by mail (i.e. correspondence,) office, or in person. I cannot confirm this, but the IRS is not "auditing" all of the returns it says it is examining. The IRS can trump these statistics in their favor by auditing one year and then picking up the next year if they are not in jeopardy of holding the tax year before they can assess before the assessment statute of limitations. There are many other tricks to give the impression of more audit coverage- the point is that the IRS agents and managers know these and their targets that need to meet and they are playing the game.

I know this because I was told to do this when "coverage" was a key performance factor. The IRS can no longer use numerical enforcement statistics to rate their employees- this ended in 1998- however, there are performance measures- the IRS "three-legged stool" or "balanced measures" of performance: business results, customer satisfaction and employee satisfaction- the one that has emerged as the forerunner is "business results"- i.e. enforcement.

The kindler, gentler IRS is over- it wants to put this perception to lower the "tax gap." The IRS wants to appear to be more efficient and to cover more areas. I am calling the shot: a well known celebrity- most likely a prominent figure from the Mitchell Report- will be singled out by the IRS for tax evasion- around April 15th. The timing will be impecable and calculated: to strike fear into voluntary compliance before April 15th.

More on this to come- because the IRS has figured one of the areas of non-compliance out- so if you think you have "skated under the radar" for years- I would not bet on it for long.

Give you a preview- if you have old tax returns unfiled- you best find a good tax professional that will get the IRS records and file a tax return that matches their records before they find you first.

0 responses:

  © Blogger templates The Professional Template by Ourblogtemplates.com 2008

Back to TOP