IRS Compliance

The IRS has increased their compliance efforts to close the estimated tax gap of $345 billion dollars, so taxpayers should expect more scrutiny from the IRS.  With the help of technology and data mining, the IRS have many tools at their disposal to inquire about out of the ordinary and complex transactions than in the past.  The most common issues are automatic non-matching documents and the like as we moved to use e-filing tax returns and documents.  The IRS issues non compliance letters for multiple reasons and many have specific numbers requiring careful attention by the taxpayer and tax preparer.  CPAs and tax professionals must stay current on best practices to help taxpayers deal with these issues.  

The IRS commissioner, Doug Shulman, said in May of this year that the IRS created an office of compliance data analytics that help determine possible non compliance tax returns.

Be prepare, keep good records, and consult a tax professional or CPA if you receive an IRS notice.

Source:  IRS.gov

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