New issues come into focus as the IRS focuses scrutiny on high-income taxpayers, partnerships and corporations, as well as those who promote the abuse of tax rules. The IRS has formally given notice that it intends to refocus attention from working-class taxpayers to wealthy and high-income audit targets. The notice,...
IRS Warns High Income US Taxpayers and Millionaire Non-Filers
The IRS has recently issued an ominous notice (#IR-2023-126) in which the IRS warns high income US taxpayers and millionaire non-filers that the IRS is targeting them to conduct audits, identify and collect undeclared income and unpaid taxes while considering criminal tax evasion charges in many cases. The IRS discusses...
Has the IRS Stopped Collecting Taxes From High Income Earners?
Has the IRS stopped collecting taxes from high income earners? Is past performance an indicator of future risk associated with an IRS audit? A recent Newsweek article flatly stated “The government just admitted it doesn’t really try to collect rich people’s taxes.” A recent study by Syracuse University researchers showed...
New IRS Audit Triggers Based on Recent Audit Data
There are many new IRS audit triggers based upon recently released data. What are some of the factors the IRS uses to select candidates for audit and how does this work? Most IRS audit selections are based upon sophisticated computer modeling that analyzes taxpayer behavior and deduction areas that are...
California has the Second Highest Rate of IRS Audits
Recent audit figures released by the IRS show California has the second highest rate of IRS audits as a percentage of the population. Why does California rank so high on this list? The answer is as simple as the number of high income tax filers. Notorious bank robber Willie Sutton...