Yesterday, the Treasury Inspector General for Tax Administration (TIGTA) released a report showing that from fiscal years 2019 to 2023, The Criminal Investigation Division (CID) of the IRS had a budget increase of $201 million (35%). Staffing levels at the agency also increased, resulting in more investigations being opened.
The report also found that the increases had not delivered reasonable results. Their findings include…
1 – Investigating tax law violations made up 60% of total investigations in 2019 but was only 53% of the total in 2023.
2 – Investigations into general fraud increased by 32% from 2019 to 2023.
3 – But sentencing under the Questionable Refund Program decreased by 68% over that same period.
4 – Sentences handed out to Questionable Return Preparers also decreased during the same period by 13%
5 – This happened while staffing levels, given the most recent IRS Layoffs, have remained almost the same. This agency has almost remained unscathed.
In other words, they’re spending a lot more money and have a lot more people while getting even less bang for their buck. What a pleasure it is to see government at work.
Or shall I say barely working as usual.
Let me leave you with this…
In order to properly understand this, please allow me to provide some context. There are three types of IRS Employees being Revenue Officers, Revenue Agents, and the Criminal Investigation Division.
Revenue Officers collect money and Revenue Agents complete audits. But the Criminal Investigation Division is completely different.
They’re the well educated, well spoken, elite force of the Service. They carry Glock 19’s on their hips and go after very bad people like organized crime figures and major drug dealers.
CID Officers are the thing of legend in tax circles. We read about and study them. But in a normal 40 year career will usually never meet one.
Suffice it to say that if you’re ever contacted by a CID Officer, you’re about to have a very bad day.
To hear that they were given all of this additional money and that it didn’t result in tangible results is disturbing on many levels, especially given the caliber of their agents. But here we are.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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