U.S. Government Could Lose Billions Due to Fewer Audits
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U.S. Government Could Lose Billions Due to Fewer Audits
Taxpayers rejoice! There may actually be some good news about tax returns this year. The US Government could lose billions due to fewer audits. That’s because according to reports, due to reduced staff, the IRS may be forced to reduce the number of audits it would ideally like to perform. The government losing billions of dollars is never good. But fewer audits for you and me might me. Congress is tasked with making tax laws and code so the country has enough money to operate properly. The IRS is tasked with enforcing those codes and laws. It has been referred to the largest collection agency in the world.
If all taxpayers simply paid their exact tax obligations on time, there would be no need for audits. Unfortunately, the tax code can be so complex, paying the correct amount can be difficult if not impossible to compute, and some citizens flat out lie to avoid their tax obligations no matter how small, or big. Hence the need for a collection agency like the IRS. The difference between what is actually owed and what is collected is referred to as the tax gap, and efforts are underway to reduce it.
Here are a few points of interests.
Less Revenue (government could lose billions)
The IRS will likely decrease the number of audits it performs on high-wealth individuals, businesses and partnerships, a particularly deep well from which to extract money. According to the IRS, their employees tend to get poached by accounting firms, especially the more seasoned staff that can be assigned to the more complex return audits.
Unfortunately, these IRS employees trend to be the most favored targets to acquire. It is not possible to simply assign less experienced auditors to the more complex audits because they do not have enough experience to be successful. Success is important, as leaving money on the table directly results in lost revenue for the country. Everyone paying the correct amount of taxes on time is important and needed for the government to run smoothly and within budget. Not all audits result in additional revenue, but it is not uncommon for individuals to simply pay more than rightfully owe, just to avoid the audit process, which can require a lot of time and resources.
Fewer Audits But Not Budget Cuts
Despite several budget cuts in recent years; not so much in 2021, in large part due to the pandemic. In the past, the IRS has noted that it does not intend to use debt collectors from the private sector to help enforce collections. That’s because this method proved to be unsuccessful when they tried it in 2006. But the government still needs money to run, and some individuals still try to get away with not paying everything they owe, so the IRS will continue needing and using audits as a way to generate revenue.
GROCO Is Ready to Help
Although there may be fewer audits in store for taxpayers this year, that doesn’t mean everyone will escape the IRS’s audit division. If you want to learn more about preventing an audit please talk to your GROCO representative. Especially if you have been chosen for an audit and you need help getting through the process. If you have any other questions or concerns regarding your taxes then just give GROCO a call at 1-877-CPA-2006 or come in and see us if you happen to be in the San Francisco Bay Area.
We hope you found this short article about “U.S. Government Could Lose Billions Due to Fewer Audits?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
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U.S. Government Could Lose Billions Due to Fewer Audits
U.S. Government Could Lose Billions Due to Fewer Audits Taxpayers rejoice! There may actually be some good news about tax returns this year. The US Government could lose billions due to fewer audits. That’s because according to reports, due to reduced staff, the IRS may be forced to reduce the number of audits it would…
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