Tax audits

The pandemic and financial crimes; another provider leaves; why CRM and accounting don’t mix; and other highlights from our favorite tax bloggers.

The increased funding for the IRS as a way to boost tax revenue was dropped after it emerged that Democrats intend to include the measure in their bigger budget bill.

The Internal Revenue Service ended a strategy for examining high-income taxpayers in 2017 and switched to another strategy that brought in far less tax revenue in the next few years.

Compliance audits, the new wrinkles of CTC, marijuana and more were key topics at a recent stakeholders meeting with the service.

The service is gearing up for a potentially massive tax-enforcement push if Congress passes a plan including $40 billion to expand audits on the wealthy.

The Internal Revenue Service has picked TaxBit, a Salt Lake City-based company, as a subcontractor to help it do data analysis and tax calculations for audits of taxpayers with cryptocurrency.

Lawmakers are considering giving the IRS additional funding and authority to expand its tax enforcement operation.

The president's plan for increased tax audits of the wealthy and corporations is a major funding source for his economic-investment proposals.

The American Families Plan includes provisions that would expand Internal Revenue Service oversight of tax preparers.

Increasing funding for the IRS enforcement efforts could yield enough to pay for reinstating the full deduction.

Employees who move to low-tax states may still be taxed by their former residence, as more states levy taxes on cross-border business.

More than 20 percent of the wealthiest Americans’ income isn’t being reported to the Internal Revenue Service, according to a new study that calculates U.S. tax evasion is far higher than previously estimated.

Fewer than two out of every 100 taxpayers reporting over $1 million in income were audited by the Internal Revenue Service in fiscal year 2020, according to a new report.

Auditors were only able to recoup about 39 percent of the more than $4 billion in unpaid taxes owed by a group of rich taxpayers with an average annual income of nearly $1.6 million.

Senator Elizabeth Warren said IRS funding should be bolstered so the richest Americans get audited about once every three years as part of her proposed 2 percent annual tax on wealth in excess of $50 million.

House Democrats are proposing two pieces of legislation that would also provide more funding for the Internal Revenue Service.

Claims for the R&D tax credit may be coming under closer scrutiny from the IRS.

The Internal Revenue Service hasn’t been pursuing cases involving hundreds of billions of dollars in income from individuals and businesses whose income has been showing up in Form 1099-K information returns, but has been otherwise unreported.

The enforcement push comes after years of persistently low examination rates.

But the IRS would need more resources, writes Natasha Sarin, an assistant professor of law at UPenn.