IRS Corporate Audits – Speeding Up Plan Implementation; The IRS is not proven efficient to audit corporations and businesses in the United States. Despite of all changes and improvements in the tax examinations conducting criteria of IRS, the agency is still not effectively auditing corporations in USA. These implementations were supposed to speed up the efficient examination of corporate audits in USA, as forecasted by the overseer of the IRS, but the reality is totally different as the IRS is until now not fine for conducting audits for businesses and corporate. If your corporation name has appeared in the list of IRS next audits, we can help you to provide complete audit services in USA. From IRS representation in USA to your specific State agency audit services in NYS, we have it all for our clients.
Details of IRS Corporate Audits:
In 2016, the Internal Revenue Service (IRS) announced that a new system will be used for the selection of cases to audit in the United States. The agency further said that only high-risk transactions will be focused more by the agency, instead of auditing the entire tax return of a company so as to enforce tax laws more efficiently in the States. But these statements just remained words, as today’s picture of IRS conducting corporate audits is totally different.
According to the latest report (27th September, 2019) by the Treasury Inspector General for Tax Administration, it can be deduced clearly that the new audit selection system is employed by the Internal Revenue Service (IRS) for conducting about 15% of audits of large businesses in addition to international companies in USA. Rest of the 85% audits are being conducted according to the old and previous procedures that not only take more time for completion but also cost more than the normal for the IRS for conducting these audits.
Not only this, the IRS is also failed in using the results and other data of the past audits for the selection and prioritization of the future cases of any corporation, according to the stated report by Treasury Inspector General for Tax Administration. The IRS mentioned that the agency is using data for the management of its audit caseload and the preliminary outcome should not be used for scraping the program.
Have a look and see how the IRS agency and the report are making debates for the issues. In response to the Inspector General Analysis report, the IRS Office of Audit commented,
We concur that these results, also described by IRS management as lackluster, should not be used to evaluate the success or failure of the program as a whole.
IRS Corporate Audits; If you read the complete report, you will clearly see the illustration that IRS has struggled in recent years for ensuring tax compliance in USA. The number of revenue agents was 5,224 in the year 2010 that abruptly fell to 2,923 in the past year 2018. The audit capability of IRS has been greatly obstructed by the cut-down in IRS budgets and hiring opportunities. The report also stated, “Given the diminished examination resources, the IRS should be even more focused on emphasizing areas that have the highest compliance risk.” The IRS also mentioned that resources and staff were assigned to work for the implementation of the 2017 tax law in 2018 & 2019 that resulted in driving the funds away from the audit program of IRS.
If you are living in the United States, you would surely know that this is not the first time that the Internal Revenue Service (IRS) is receiving such bad and negative report and feedback for corporations’ audits in USA. What do you think about IRS serving its role in USA? Share your thoughts in the comments section. If you want any help regarding audit services in United States, you can make free consultation with our representative regarding IRS corporate audits or anything related to accounting and tax.