IRS Plans to Cut Back Auditing of Large Corporations
The Internal Revenue Service (IRS) has decided to spend less time auditing multi-million dollar corporations.
Under a new plan revealed to Syracuse University’s Transactional Records Access Clearinghouse (TRAC), the IRS will expend 18% less effort auditing businesses with assets of $10 million or more compared with just two years ago.
The agency also sees itself devoting 14% less time for specialized revenue agents to conduct corporate audits in FY 2013, compared to what was allocated in FY 2011.
There has been less of a drop in the rate of individual taxpayer audits—5.3% in FY 2012, moving to 7% due to an increase in number of filed returns.
TRAC—which obtained the IRS planning document through a Freedom of Information Act request—noted that the reductions were decided upon before sequestration, which could result in the IRS implementing more cuts in the months ahead.
The IRS responded to the release of the TRAC report by pointing out that its budget was cut by $1 billion in 2010, and that its staff was reduced by 7,000 employees in 2011. It insisted that it maintains a fair balance between individual and corporate audits.
-Noel Brinkerhoff, Danny Biederman
To Learn More:
IRS Audits Slump, Staff Down, Long-term Impact Uncertain (TRAC Reports)
IRS Plans to Reduce Corporate Audits (by Michael Cohn, Accounting Today)
Surprise! More IRS Auditing of Large Companies Results in More Taxes Paid (by Noel Brinkerhoff, AllGov)
IRS Completed Only 13 High Wealth Audits in 18 Months (by Noel Brinkerhoff, AllGov)
IRS Audits of Large Corporations Decline to New Low (by Noel Brinkerhoff, AllGov)
- Top Stories
- Unusual News
- Where is the Money Going?
- U.S. and the World
- Appointments and Resignations
- Latest News
- Hollywood Companies Win FAA Approval for First Commercial Use of Drones in U.S.
- No Counsel, Convictions or Trials for Longtime Mississippi Jail Inmates
- D.C. Passes Strict—and Unwanted—Gun Law Allowing Concealed Firearms
- As U.S.-Led Coalition Strikes ISIS, Women Emerge to Fight Against and Die at Hands of Terror Group
- U.S. Ambassador to Rwanda: Who Is Erica Barks-Ruggles?