Will Fewer Audits Lead to More Cheating?

There’s an old saying that cheaters never prosper. Of course, there are probably many people who have gotten away with cheating that would beg to differ. When it comes to taxes, however, it’s always best to avoid cheating. Surely, some people do get away with it, but if you ever get caught it could cost you dearly. So why all the talk about cheating? We certainly don’t condone cheating on your taxes at GROCO, but some people might be under the impression that this could be a good year to try.

Why is that? Well, according to recent reports from the IRS, because of budget cuts, the agency will be doing a lot fewer audits this year. That means more false or erroneous returns are likely to slip through the cracks. While fewer audits are good news for taxpayers, it could also be bad news at the same time for those who are chosen for audits. The IRS estimates it will do about 1 million audits this year, down from 1.2 million in 2014 and 1.4 million in 2012.

You might think that with fewer audits to perform the process might go a little quicker, but with a depleted staff the IRS expects that the audit process could actually take longer than normal. In any case, with fewer audits expected the IRS warns that that is not a reason for people to think they can get away with brazen cheating.

 Plus, even though you might avoid an audit this year, the IRS has three years to go back and audit a return after it has been filed. Plus, if someone bluffs on their income by 25 percent or more the tax agency has as long as six years to review his or her return. Add to that the fact that the IRS’s budget could improve in coming years, which would give them more money and staff to work with, and cheating on your taxes should seem less tempting.

/GROCO
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The True Value of Your Company May Be Different From What You Think

The True Value of Your Company May Be Different From What You Think

The True Value of Your Company May Be Different From What You Think Approaches to Value Intangible Assets Posted: 3/31/11 I’ve received a lot of inquires asking how to value a company that has yet to generate any revenue, has not reached profitability, and yet, it has a substantial history of expenses. Most are start-up…

To receive our free newsletter, contact us here. Subscribe our YouTube Channel for more updates. Alan Olsen, CPA 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. American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen 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… Untitled_Artwork copy 4 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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