What do we know about audits and IRS enforcement?
Since 2010, Congress has been asking the IRS to do more with less money. This has reduced the IRS’s audit resources by 28 percent, and the audit rate has fallen from 0.9% in 2010 to only 0.5% last year. And, the overall number of audits dropped by almost half...IRS admits it audits the poor just as often as the rich
In April, the nonprofit newsroom ProPublica reported on a surprising imbalance at the IRS. Although it would almost certainly be both more effective and bring in more revenue if it focused on auditing the rich, the agency does not do this. No, it audits the working...Under audit for micro-captive insurance transactions? IRS offer
A captive insurance company is one that is created by a business as protection against certain risks. And, Section 831(b) of the Internal Revenue Code allows certain small insurance companies the option of paying tax on only their investment income. There are other...Minnesota lawmakers consider new tax law
Minnesota lawmakers are considering two tax bills to raise revenue for the state. Key changes that would go into effect if the proposal, as written, becomes law include: Gas tax. The proposal would increase the gas tax by 70% over the next four years, resulting in an...Joe versus the tax man: Do taxes need to be so painful?
Tax season is not an enjoyable time of year. Our current tax system forces taxpayers to navigate complex tax issues, fill in various forms and hope they did not mess the whole thing up. But does it have to be this hard? Other countries do not require such a difficult...Three tips before filing 2018 tax returns
Tax season is upon us. Taxpayers throughout the country are likely organizing tax forms and getting the new paperwork or computer programs ready for the upcoming filing deadline.These tips can help prepare taxpayers as they get ready to file tax filings to the...Forget to adjust tax withholdings? You may be off the hook.
The United States government requires taxpayers to make tax payments throughout the year. Taxpayers often meet this obligation by withholding tax payments from their paychecks or making estimated tax payments throughout the year. However, if a taxpayer fails to pay a...IRS to check social media for evidence of tax evasion
The Internal Revenue Service (IRS) has had to cut down significantly on the size of its workforce. Due to the reduced workforce, the agency has stated it struggles to keep up with investigations. As a result, the agency has needed to take steps towards increased...Does the earned income tax credit increase audit risk?
Taxpayers who claim the Earned Income Tax Credit (EITC) are at an increased risk of an audit compared to those who do not. The reason: it is a tax credit often claimed in error. Last year alone the Internal Revenue Service (IRS) audited 381,000 taxpayers that claimed...
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