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IRS to increase back tax collection, audit enforcement action

If you have not filed your tax returns, or if you owe unpaid back taxes, employment 941/940 payroll tax, or could possibly be audited, the IRS is raising the bar and hiring more revenue officers and revenue agents.

Our tax firm assists taxpayers in getting compliant, resolving their unpaid back tax matter and represent you at audit and exam conferences to present your case for the best possible tax debt relief outcome.

Call us today for a free evaluation at 1-877-788-2937.

IRS to increase back tax collection, audit enforcement action, Los Angeles, California

On April 13 IRS Commissioner Charles Rettig testified that he believes that the annual tax gap, i.e., the difference between taxes owed the federal government and taxes paid, may total $1 trillion.

The IRS Commissioner estimated the tax gap to be $1 trillion annually. He further said that IRS’s official estimate will be announced next year. He also noted that this amount was more than double the $441 million amount that IRS believed to be the gap from 2011-2013. He pointed to the following as the principal causes of the gap:

the use of cryptocurrencies,

income from illegal activities,

foreign source income,

underreporting by pass-through entities,

the loss of 17,000 IRS enforcement agents,

and unscrupulous tax practitioners.

Mr. Retting also spoke about how to reduce the gap. He noted President Biden’s announcement of a $1.2 billion budget increase for fiscal 2022. A $1 billion appropriation solely for IRS enforcement would allow the agency to hire 4,875 new frontline enforcement personnel and their counterparts in the Taxpayer Advocate Service, the Independent Office of Appeals, and the Office of Chief Counsel. Some of that $1 billion appropriation would be used to improve systems to detect tax fraud and evasion.

He also suggested that Congress take action with respect to the following:

Strengthening income information reporting requirements, particularly regarding cryptocurrencies.

Strengthening IRS’s ability to regulate paid tax return preparers.

Call us today for a free evaluation at 1-877-788-2937.

IRS to increase back tax collection, Los Angeles, California, audit enforcement action. Unpaid back tax debt relief, audit defense and representation, employment 940/941 payroll tax problem resolution, unfiled delinquent tax returns, appeals, CP2000


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