An illustration of the overwhelmed IRS: Letter 5935 & Form 15023
For years we have been claiming the US tax code is the most complicated thing in the history of history. And tasked with administrating the law is the IRS. Yet, the IRS often finds itself stumbling over its own data and routinely gets things wrong. Things that it seems the IRS should be getting wrong. And recently new evidence supporting the proposition that the IRS is overwhelmed is discovered. IRS Letter 5935 with accompanying Form 15023. In this article, we will illustrate the problem the IRS has tracking offshore voluntary disclosures, and perhaps more importantly, stopping bigger problems taxpayers can can cause themselves by not understanding the IRS is the one who may have made a mistake.