The IRS may be wising up. They have said that its time is better spent finding 80% of possible underpayments from eight audits than catching 100% of underpayments in four audits.
This was my philosophy when I was an auditor. I was pretty lax in checking the nickel and dime items, since the time wasted on a $ 50 audit finding could be better spent moving on to an audit finding of $1 million.
Even the computer-generated inquiries about small items probably waste more time in processing any collections that result.
A Texas state auditor once assessed a Cement Co 44ยข for underpaying the cement tax.
This was my philosophy when I was an auditor. I was pretty lax in checking the nickel and dime items, since the time wasted on a $ 50 audit finding could be better spent moving on to an audit finding of $1 million.
Even the computer-generated inquiries about small items probably waste more time in processing any collections that result.
A Texas state auditor once assessed a Cement Co 44ยข for underpaying the cement tax.