I.R.S. Agents Feel Pressed to End Cases
From the New York Times
Excerpt: The head of the Internal Revenue Service faces questions in Congress today about auditors’ complaints that they are being forced to close corporate cases prematurely, allowing billions in tax dollars to go unpaid.

In interviews, these revenue agents warned that unless they were free to pursue what their instincts tell them, their focus would end up being only on known abuses, and new ones created by the tax advice industry would go undetected.

The agency countered that it had increased the number of companies whose tax returns it examined by a fourth since 2001, even though the number of auditors was virtually the same.

Agency officials said this was accomplished by cutting back slightly on audits of the very largest companies, which produce more than 80 percent of all corporate profits, while increasing audits of those with assets of $10 million to $250 million. At the same time, the officials say, they have shortened the average time to complete an audit from almost two years in 2001 to less than 18 months last year.

I.R.S. officials say the auditors who are complaining are mostly older agents unwilling to adopt new approaches.

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Labels: agency, irs

Report: IRS to Cut Audits on Wealthiest
From UPI
Excerpt: The Bush administration plans to cut nearly in half the number of auditors who review tax returns of some of the wealthiest U.S. taxpayers.

Plans call for eliminating 157 of the Internal Revenue Service's 345 estate tax lawyers, The New York Times reported. The cuts will affect audits of taxpayers who are subject to gift and estate taxes when they transfer assets to their children and others, the newspaper said.

IRS Deputy Commissioner Kevin Brown told the Times he ordered the staff cuts because the number of Americans who are subject to the estate tax has fallen under the Bush administration.

However, six IRS estate tax lawyers whose jobs are at risk told the newspaper the cuts are part of a behind-the-scenes move at the IRS to shield people with political connections and complex tax-avoidance devices from thorough audits.

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Labels: agency, bush, irs