BIDEN’S AUDIT-THE-RICH TARGET OF $700B

May 11, 2021 by TxSEA
BIDENS-AUDIT-THE-RICH-TARGET-OF-700B.jpg?time=1642803980

A major funding source for President Biden’s economic-investment proposal is to raise $700 billion over a decade from
increased tax audits of the wealthy and corporations.
The administration is proposing a more than 10% increase in funding for the Internal Revenue Service for the next fiscal
year and $80 billion over the next 10 years to replace outdated technology (Perhaps to replace some of those broken
printers and copiers) and increase the IRS’ depleted auditing staff.
Is this a good strategy? Some former IRS officials say it is not. It will take several years to obtain results considering it
takes time to hire and train new employees and in todays climate, we have an employee shortage. Also, audits on highly
complex tax returns are prone to appeals and litigation that could hold up payments for an additional length of time.
Efforts to get unpaid taxes have returned little.
For example, Facebook Inc. is fighting the IRS in court over a tax bill initially dating back to 2010 that could cost the
social media company more than $9 billion.
The IRS has three (3) years from the date a tax return is due or filed to audit the return and charge additional tax,
penalties, and interest. That can be pushed to six (6) years if the taxpayer has large amount of unreported income, and
there is no time limit if fraud is suspected. Litigation can go another five (5) years plus.

TxSEA_GreyStar_White

100 Center Dr
Del Rio, TX 78840
Email: info@txsea.org

Join the TxSEA mailing list

    Copyright by Texas Society of Enrolled Agents. All rights reserved.