Aletho News


IRS Plans to Cut Back Auditing of Large Corporations

By Noel Brinkerhoff and Danny Biederman | AllGov | April 11, 2013

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.

April 11, 2013 - Posted by | Economics, Progressive Hypocrite | , , , ,

1 Comment

  1. The IRS has not been granted authority to audit anybody. At least, not by the US Dept. of Treasury, because the IRS is not an agency of the US Dept. of Treasury. Ask them to show their authority to do so, then ask them to prove that they’re part of the US Dept. of Treasury, and watch them bob and weave.


    Comment by Big M | April 11, 2013

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