There may actually be some good news about tax returns this year. That’s because according to reports, due to budget cuts, the IRS has been forced to reduce the number of audits it will perform. In fact, the IRS Commissioner recently told a congressional panel that the IRS plans to perform 100,000 fewer audits on individuals this fiscal year.
Less Revenue
According to the commissioner, the IRS will also decrease the number of audits it performs on high-wealth individuals, businesses and partnerships, as well. The IRS commissioner also said that because of the reduction in the number of audits, the federal government stands to lose about $3 billion in revenue.
Budget Cuts
The IRS saw its budget cut by four percent for the current fiscal year to $11.9 billion. According to reports, in 2013 IRS audits hit their lowest point since 2008. Meantime, the IRS also noted that it does not intend to use debt collectors from the private sector to help enforce collections. That’s because this method proved to be unsuccessful when they tried it in 2006.
GROCO Is Ready to Help
Although there may be fewer audits in store for taxpayers this year, that doesn’t mean everyone will escape the IRS’s audit division. If you want to learn more about preventing an audit click here. If you have been chosen for an audit and you need help getting through the process then click here. If you have any other questions or concerns regarding your taxes then just give GROCO a call at 1-877-CPA-2006 or come in and see us in one of our Bay Area locations.
The post U.S. Government Could Lose Billions Due to Fewer Audits first appeared on Advisors to the Ultra-Affluent – Groco.
