In a statement Friday, CEO Mark Koziel, CPA, CGMA, said the AICPA is discussing the state of the IRS with agency officials in the wake of layoffs. “A modern, functioning IRS is essential for Americans to meet their tax obligations,” the statement said. Journal of Accountancy (3/7)
Mr. Koziel is correct. But has there been a better time to cheat? I don't know what happened in the 70s,80s and 90s but it seems that the climate is very good for aggressive tax positions. Taking advantage of this is on my mind.
Above the e-fold, NY times:
Stalled Audits and a Skeleton Staff: Inside Trump’s War on the I.R.S.
President Trump is planning to gut the work force while trying to turn the I.R.S. into a more political agency....
What happened in the 70s, 80s and 90s was that IRS told Congress that every $1 appropriated for tax enforcement resulted in $10 of additional tax revenue. Congress believed it, because it was true, but at a certain point zealous audit and collection tactics resulted in abuse. Politicians could always get votes by criticizing the IRS. The more critical they were, the more votes they got. And, the more money they raised for their campaigns from billionaires who paid no tax and wanted to keep it that way.
There are banana republics with better tax administration than what we will soon have, but the pendulum will swing back the other way eventually. Meanwhile, you're probably right. At least for clients with the correct party registration, audits are less likely than lightning strikes.
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