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IRS audits: singular considerations and concerns

Whither the ISR audit?

What exactly is its fundamental and overriding purpose? Is it — as an Internal Revenue Service communiqué recently stated — “a deterrent to … potentially noncompliant taxpayers,” or is it primarily and foremost a grand money-making scheme for the national tax agency?

A number of our blog readers in San Diego and across Southern California might have spent a bit of time with one of our posts from earlier this month that focused to a degree on that very question. In our November 9 blog entry, we noted what is an altogether obvious aim underlying IRS audits, namely, “the goal of increasing tax revenue for the US Treasury.”

Given such a purpose, it is self-evident that any reasonable tax-paying American might feel more than a bit queasy when informed that he or she is on the receiving end of an agency audit. It is not exactly back-page news that the IRS commands plenary powers when financially investigating an individual and that it is not hesitant to employ them.

A recent Forbes article addressing IRS audits notes an inspector general’s report urging agency auditors to increase IRS audit collections through a special focus on the superwealthy, because, as Forbes puts it, “the tippy-top is where the money is.”

It also spells terrain that is most certainly ripe for hyper-aggressive agency action and even abuse of citizens whose only cause for being targeted is the amount of money in their bank account.

As we note in our above-cited post, the investigatory powers wielded by the IRS, while impressive, are not unchecked. Tax agents must act within the law.

Our attorneys advocate diligently on behalf of clients to ensure that government auditors do play fair and that they do conduct their activities within the legal scope of an audit.

We take due pride in our role and responsibilities as legal advocates. Individuals with questions or concerns regarding any aspect of an IRS audit can contact our office for candid guidance and diligent representation in an audit matter.