IRS Audit Rate Hits New Low

[AZ-Tax]

I had several clients come in this year and tell me they heard about this. If you are looking for a reason for your clients to be less organized, less truthful, less cooperative with their tax preparer etc...this article will help accomplish that. This article will most likely encourage more TP's to become DIY's. Recently someone affiliated with my kids little league sports program was considering becoming a tax preparer and was asking me about it. I discourage that person from becoming a tax preparer not due to competition but at a strike of a pen, our industry could go down hill immediately.

I am curious, does anyone know if the IRS can edit Cir 230 w/o Congressional approval?

http://www.accountingtoday.com/news/irs-audit-rate-hits-new-low-70342-1.html

[BOB W]

I heard the same thing, but I'm sure Line item audits will continue (Desk Audits).

[jimmcg]

Audit rate

The announcement was made by their PR office in DC. They are trying to convince Congress to increase their funding level.

[joanmcq]

I'm not surprised since the IRS budget was cut, even as ID theft and the rollout of the new taxes occurred. The House wanted payback for the 501(c)(4) crap.

[David1980]

I'm not surprised since the IRS budget was cut, even as ID theft and the rollout of the new taxes occurred. The House wanted payback for the 501(c)(4) crap.

Yes, but of course that also hurts them on all the fraud of EIC, ACTC, etc. Which I would imagine the house is against. One might think that the house wants high fraud among refundable credits in order to eliminate those credits. If they fund the IRS and the IRS can keep the fraud rates down people won't see it as a problem. But keep the funding low so that the IRS can't possibly go after the refundable credit fraud the fraud rates will climb and they can point at the fraud rate and use it to justify eliminating the refundable credits. So it could be that they're against the credits but want lots of people to get them in the short-term.

[AZ-Tax]

Depends on your definition of crap

I'm not surprised since the IRS budget was cut, even as ID theft and the rollout of the new taxes occurred. The House wanted payback for the 501(c)(4) crap.

How about the House just FULLY enforce the 1913 501(c)(4) that Congress passed in 1913 which uses the word exclusively.