Audits on Wealthy to increase

A trend we see is audits of those whose reported income was so low they were entitled to the  Earned Income Credit.


Oftentimes, these folks call us and ask us what to do — they have no money to pay the assessment. The answer tends to be to put them into non-collectable status. The debt doesn't get wiped out (until the statute of limitations expired), but the IRS stops bothering them for the money.


So you can see a very difficult administrative problem in auditing low income individuals. The IRS spends A LOT of resources to correct under-reporting, but a lot of these people will never pay the entirety —if anything — of the audit bill.


The IRS reports a shift in policy – IRS Commissioner Douglas Shulman:

"Our long-term investment is to have a trend where wealthy individuals, large corporations, (those) who have really benefited from being in the United States, we're going to make sure that they pay their taxes".


So yeah. The IRS is going where the money is. If you happen to be a higher income earner, and especially if you are self-employed, be sure your have good records. And if there is income you "forgot about," its not a bad idea to consider amendeding any returns you filed in the past three years.


If you need assistance ameding returns or getting into compliance, contact us at 888-727-8796 or email info@irsmedic.com.