Over the past several years, the IRS has put tax fraud investigations on the back burner. Statistics show a drop in criminal investigations and prosecutions in the past several years: Recent developments at the IRS show that the days of ignoring tax fraud are over. In March, 2020, the IRS declared that prosecuting tax fraud [...]
Each year, the IRS National Taxpayer Advocate (NTA) issues their Annual Report to Congress. This report is great reading for taxpayers who want to know common disagreements and issues between the IRS and taxpayers. Included in the report are the ten most serious problems (MSP) at the IRS as it relates to taxpayer rights. Many [...]
For taxpayers and tax professionals who are trying to resolve tax problems/issues, these days are trying times. The IRS is extremely backlogged in processing and resolving most post-filing issues. IRS resources provide little help in understanding what is going on with your case at the IRS. IRS transcripts that are available to taxpayers and their [...]
The IRS does issue an annual press release of its latest enforcement priorities. However, taxpayers can glean IRS compliance enforcement interest areas based on many IRS statements and studies over the past few years. IRS compliance enforcement actions have decreased significantly since 2010. However, those days appear to be over. In fact, in 2019, the [...]
It is no secret that the number of IRS auditors have slipped over the past decade. IRS data shows the decline in the personnel doing examinations of tax returns: IRS auditors are on the decline The obvious result is that taxpayers are experiencing less IRS audits. IRS audit data shows the drop off of IRS [...]
IRS audits are rare these days. But if you are subject to an audit, how long does it take to resolve? Audits and the Assessment Statute of Limitations Audits are almost never resolved in one day. From the time you receive an audit notice – to final resolution, including any appeal – can take up [...]
In 2018, the IRS questioned the accuracy of about 6 million tax returns. The most often method is through a CP2000 – underreporter- matching notice. About 3 million CP2000 notices were sent in 2018. In second place is the IRS mail audit- with about 750,000 mail audits being conducted in 2018. Common CP2000 and [...]
"We have information that you have or had one or more accounts containing virtual currency but may not have properly reported your transactions involving virtual currency, which include cryptocurrency and non-crypto virtual currencies." New IRS Notice 6174-A The IRS clearly sees noncompliance on virtual currency transactions as a threat to the tax system. Now, the [...]
Taxpayers can get a CP2000 notice if the IRS determines that a taxpayer did not report all income on their return. The IRS questions more returns each year with its CP2000 matching program (matches the return to Forms W-2, 1099, 1098, etc, that are filed under the taxpayers SSN) than with audits. In 2018, the IRS [...]
If a taxpayer has a dispute, they can go to the IRS Office of Appeals to get an independent review of their case. IRS Appeals is available for almost any IRS dispute. In 2018, IRS data shows that 94,832 taxpayers used IRS appeals to get a second opinion at the IRS. 87% of all IRS [...]
