Re: IRS's new $80,00,000,000 (Billion) budget is 7 Times more..

110%er [5714]

TigerPulse: 92%

Posts: 12197

Joined: 9/28/08

Aug 12, 2022, 5:11 PM

Here is how this works...

You win the lotto and get picked for an audit. You think "no big deal, I just use the std deduction so all is good. Let them audit me."

They'll look at your last return. They will cross check every single 1099 (INT, DIV, MISC, ...) form in the country submitted on behalf of 300+ million people. They will find one or more that they believe should be yours, but you did not claim it. You get on the bad list while you spend time and money explaining the person in a different state just has the same name as you and can't have the same SSN, so their 1099 should not be on your return. But for some reason the SSN was not on the other form. Auditor agrees to check into that, but in the meantime (since you are now suspicious) they start audits of every return for the past five years.

Guaranteed on every return no matter how simple you think they are, the auditors will find questions. They'll look at your kids - how much interest did they make? Was that all or was there more? Why did you file like you did vs. filing another way (married joint)? If you are divorced, get ready for all that. They'll want to see returns of the ex spouse too if there is child support or alimony.

For every question you believe you answer satisfactorily, they will generate two more. This can go on for years.

In year two, your auditor will leave their job and another will get your case that knows nothing about it and is apparently even more dumb than the last one. You'll spend time going over questions you already settled. blah blah blah.

Good luck!

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Very accurate description. I laugh at people that say “I have nothing to hide, bring it on”. NC Tiger was thorough and spot on. Here’s my simplified version of how they operate.
1). Look for obvious fraud. If none found….
2) Look at potential gray areas …..If ok
3) Search for any technicality they can get you on.
Their job is not to help you, it’s to bring money back to the office!!! Thousands of additional agents will need to justify their miserable existence and find money for “the company”
People think they are only coming for huge corporations. Bull crap. They have teams of attorneys and accountants and they have the means to fight. Mom and Pop business is low hanging fruit. They can’t fight back. It becomes “just tell me what I owe you and make this go away”. IRS then goes back to the office with money.
By the way, those technicalities I mentioned. If you have a moderately difficult tax return you will NOT be in full compliance even if you think you are. Trust me, I’ve been there with these clowns.

IRS's new $80,00,000,000 (Billion) budget is 7 Times more..