The Internal Revenue Service and newly confirmed IRS Commissioner Danny Werfel, released additional details on how they plan to spend their newly found $80B. What’s interesting is what their publishing, and what else can be inferred from their public statements.
The official Strategic Operating Plan (SOP) is organized around five goals, which include…
“1 – To dramatically improve taxpayer service and help taxpayers receive the tax incentives for which they are eligible;
2 – To quickly resolve taxpayer issues;
3 – To expand enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address the tax gap;
4 – To use cutting-edge technology, data, and analytics to operate more effectively; and
5 – To attract, retain and empower a highly skilled, diverse workforce and develop a culture that is better equipped to deliver results for taxpayers.”
The IRS further states that it willl focus on “areas where compliance has eroded the most.” Take a moment and read between the lines.
The Tax Gap is currently estimated at 15% of federal annual tax receipts. Our newly confirmed IRS Commissioner has already said that this will be one of their main focuses.
How do they go after people and businesses who don’t file and pay their taxes? Normally it’s based on technology rather than audits.
They know about businesses when they are formed. They have your EIN and your address. If you processed any credit cards they know exactly what you took in via plastic. If you have ever paid any sort of a tax, whether it was income taxes or even a parking ticket, they know where you bank.
And the rest is a simple matter of technology. More importantly they can go after you without violating their promise not to increase the number of audits on lower-income individuals and businesses.
All they need to do is send out compliance letters telling you to file and pay your taxes. If you don’t respond they file liens and levies. At that point they get your money directly from the bank without having to audit anything.
Mostly it’s done by computer programs.
Let me leave you with this.
There was another part of the recent missive from the Service that was particularly bothersome. The following is a quote from Commissioner Werfel.
“For the first time, the IRS will help taxpayers identify potential mistakes before filing, quickly fix errors that could delay their refunds, and more easily claim credits and deductions they may be eligible for.”
And exactly how would they do that? It’s a great sound bite, but obviously it’s nothing more than Big Brother having a program that tells you exactly how to do your tax returns.
This is more frightening than anything else. If you’ve ever had a meeting with an IRS agent, and I pray you never do, you know exactly what I mean.
Again, this isn’t something that violates one of their prime directives to only audit upper-income individuals and businesses. This means that they would only let you file your return if it matches up to what they already have inside their system from their collection of your W-2’s, 1098’s, and 1099’s.
It means that the other businesses who process those W-2’s, 1098’s and 1099’s and give them to the government would never make a mistake. It also means that our omnipotent IRS would never, ever make a mistake in telling you how to do your returns.
I’m actually horrified.
If you haven’t filed your returns, then get off of your tail, and get them filed. If you aren’t currently one of my clients, and are in any way concerned about the quality of work being performed on your behalf, call us today.
They’re coming. My Brothers and Sisters, I’m telling you now that they’re coming. And the only thing between them and you is me.
We’re all going to get through this. Let’s get through it together.
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