Enforcement "Improvement" Update
This November is the mid-point in the five-year term of IRS Commissioner Mark
Everson. Mark continues to focus on his three primary objectives:
- Better serving of taxpayers
- IRS modernization
- Enhanced enforcement activities (or audits)
He claims good progress in all three areas, but we are looking here at what
has happened in the area of enforcement - "to ensure everyone pays
their fair share." Key items from the fiscal year that ended September 30, 2005:
- Enforcement revenues (from collection, examination, and document matching)
increased by 10% to a record $47.3 billion.
- Total individual returns audited increased by over 20% compared to 2004.
- Audits of individuals with incomes over $100,000 is at 1.58%, double
what it was four years ago.
- Audits of small businesses organized as corporations more than doubled over 2004.
Alarming to you as an individual? It does not need to be. Just -
- Work with a competent tax professional. (That cost is minimal
compared to the value of a weekend spent preparing your own return.)
- Allow your tax professional to guide you to remain compliant with the law.
- Sleep well at night!
IRS article also lists improvements in customer service including improvements
in their toll-free tax advice accuracy rate (89%) and customer satisfaction with their
toll-free service (95%).