The Internal Revenue Service (IRS) recently hired hundreds of new agents. The move is predicted to signal a surge in audits in coming years and a recent congressional bill supports this concern. The bill is a bipartisan infrastructure investment plan that, if passed, would set aside billions in funding for the IRS.
Why are lawmakers pushing to fund the IRS?
For years the feds have stated that they have not been able to staff the agency as well as they should. As a result, they claim they are losing big money because they cannot hold taxpayers accountable for avoiding their tax obligations. Just how much do they think they are losing? According to a recent estimate, the lawmakers state that if the agency gets the funding, they could recoup $100 billion in tax gains.
What if I get an audit notice from the IRS?
If you were to get an audit notice, it would most likely come in the mail. It is important to be highly suspicious of any phone call, text, email, or correspondence through social media. It is very unlikely anyone from the IRS would reach out in this manner.
Those who do receive notification of an audit should review it carefully. It will likely contain dates to respond to any questions or requests for additional information. A failure to do so can result in additional fines and penalties. It is also important to know that you do not have to go through the process alone, especially if you are concerned the audit could result in a large tax bill. The attorneys at Goldburd McCone have experience dealing with the IRS in these matters and can help take the lead in the process on your behalf.