Watch out! Over the past several years the IRS has been challenged with closing the tax gap (the difference between what the IRS actually collects and what the economists estimate it is due). This has been popular inside the beltway because it increases revenues without increasing taxes. As the tax code gets increasingly complex, the IRS is doing more work to find those out of compliance. The WSJ explains: http://online.wsj.com/article/SB120165118416126911.html?mod=mktw
Filed under: TaxBrain.com_Updates | Tagged: enforcement, IRS_Audit, TaxBrain.com_Updates, tax_gap
Absolutely. Currently there are more than 37,000 TCMP (Taxpayer compliance managment program)audits going on across the country. These audits, known as “audits from hell” because they go through every line of the return, are used by the service to update the DIF (the IRS statistical database) to improve their audit selection to raise revenue and cut the tax gap.