National Tax Expert Disputes Decreases in IRS Audits
May 31, 2013 --
ENCINO, CA (PRWEB) May 31, 2013
A recent CNN Money article states that government budget cuts of over $600 million to the IRS may result in layoffs of IRS employees, which includes examiners who audit tax returns. This action may result in less service to the American public, including fewer face-to-face audits and consequently less dollars recovered. Michael Rozbruch, CEO and founder of leading tax defense firm Tax Resolution Services, Co., disputes the news report that implies there would be fewer questioned tax returns as a result of the sequestering budget by Congress.
Rozbruch believes the IRS already has changed its auditing strategy. We may see field audits decrease, however because of the IRS increased use of technology, computer generated notices questioning items on taxpayers tax returns (which the IRS does not consider an audit), are more likely to increase the audit rate. These computer generated inquiries are able to find more errors and money than ever before. Therefore, the real audit rate is closer to 8% versus the 1.1% rate that the IRS claims. It will mean an additional 16 million people will receive IRS notices questioning items on their tax returns which will result in the IRS extracting more money from the American taxpaying public
American taxpayers who file and pay their taxes have the highest tax compliance rate in the world, which is at 83%. Rozbruch sees computer generated audit notices as a way for the IRS to further increase the U.S. compliance rate. Although Rozbruch challenges several points made by the news report in CNN Money, he does agree that despite budget cuts and employee layoffs the IRS intends to be as rigorous in enforcement as possible. Rozbruch states, The best way you can protect yourself in this climate is to have the services of a professional handle your tax audit case. Representing yourself in an audit is like going to court without a lawyer. The IRS is only interested in assessing as much money as they can from you and they will trample your rights if you don't know what they are.
For more expert analysis of breaking tax news and other financial issues facing the nation, visit Michael Rozbruchs blog at http://www.taxresolution.com/blog.
About Michael Rozbruch
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