- Republicans in Congress are claiming that the IRS “intentionally” steered dollars away from customer service in an effort to get budget increases in order to pacify angry taxpayers.
The ploy did not work and has only worsened tensions between the IRS and Congress. Even further budget cuts appear to be likely.
- Fines for not reporting foreign accounts are becoming a great revenue source for the IRS. They are paying close attention to this area.
- The IRS has not boosted its policing of noncash distributions though they suspect material amounts of fraud in this area each year.
- The IRS is having trouble auditing large partnerships and lacks the manpower to do them properly. Rates of audit are expected to start to decline.
- Identity theft continues to be on the rise and is a huge problem for the IRS.
- More people are now paying AMT than in prior years. Planning for this tax or mitigation of this tax is now becoming more prevalent.
- The IRS is attacking compliance issues with 401(k) plans. 401(k) plans without proper and complete compliance documents are getting hammered.
- An IRA can invest in a company in which you serve on the board, the courts have ruled (Nolte, D.C., Va.).
- Working interests in oil and gas ventures have profits that are subject to self-employment tax, as many surprised taxpayers have recently and unpleasantly learned.
- Court cases against the IRS for bias and “peculiar” selections for audit are not going away. Evidence is mounting against the IRS.
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