Last week the Treasury Inspector General, an internal IRS watchdog, released a report that detailed extravagent mistakes by the IRS that has cost the US treasury billions. Most of the errors were for business tax credits to corporations that did not qualify to receive them. Examples provided in the report included providing childcare for their employee’s children.
In some of the cases, the tax credits had expired but the IRS allowed the business to take them anyway. In other examples, the IRS failed to catch businesses who had taken erroneous tax credits. IRS Commissioner John Koskinen has continuously stressed the $1 Billion in budget cuts to the IRS over the past year have taken their toll.
The IRS is understaffed and under immense pressure to generate revenues. In our business audit representation we repeatedly have to educate IRS Revenue Officers on issues such as accrual accounting and how US tax law applies to a given taxpayer, while protecting our clients from fishing expeditions designed to simply generate a large bill to the US Treasury.
Protect yourself. If you are a business owner and are the subject of an IRS or California tax audit you need accurate and substantive counsel. Contact us for a free consultation at 866-631-3470.