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IRS to Get Its Act Together on Whistleblower Program

Posted on by Caleb Newquist

The Service has heard everyone's concerns that whistleblower tips aren't being reviewed in a timely manner, rewards aren't paid, blah blah blah, so just everyone cool it while they sort this out:

The IRS will work with “internal and external stakeholders” on a “comprehensive review” of the agency’s guidelines and procedures for handling whistle-blower complaints, Deputy Commissioner for Services and Enforcement Steven T. Miller said in a two-page memo to senior IRS officials posted on the agency’s website yesterday. Miller also set 90-day deadlines for the agency to review whistle-blower claims, which can take at least seven years to resolve. […] “Whistle-blowers can provide valuable leads and often offer unique insights into taxpayer activity,” Miller wrote. He said timely action is essential and debriefing of whistle- blowers will “be the rule, not the exception.” 
See? Piece of cake. They'll just ask everyone who's left to pick up the slack.
 
 

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The IRS Doesn’t Want to Burden Anyone Too Much but They Kinda Want That Money

irs.jpgThe IRS, in its continuing effort to squeeze every last dime out of every single one of us, is planning 6,000 audits of companies and their compliance with employment taxes over the next three years.
The Service apparently figured it was about time they started putting the screws to companies since they hadn’t done an analysis since 1984:
Continued, after the jump

The Treasury Department in 2005 estimated, based on the 1984 IRS data, that companies underpay employer taxes by about $14 billion annually. In particular, federal agencies have raised concerns about whether employers are properly classifying workers as company employees or independent contractors.

The Service isn’t wasting any time, already proposing a $14 million tax on FedEx after auditing the courier’s 2002 tax return. The Service is also looking at the company’s 2004 through 2008 tax returns, so FedEx should probably get the check book.
The Service is promising to make company’s experience as ‘least burdensome as we can’ but we’re guessing they’re going to want the money, Lebowski, and being a nuisance will probably be of secondary importance.
IRS to Audit 6,000 Companies to Test Employment Tax Compliance [Bloomberg]
IRS Plans 6,000 Employment Tax Audits [Web CPA]

Attention Dallas Cowboys Fans: You Have Another Shot at Season Tickets Courtesy of the IRS

Tomorrow morning at 9 am Dallas time, bring your biggest suitcase filled with consecutively numbered hundos so you can watch Romo disappoint the faithful for yet another season:

The Internal Revenue Service plans to auction the six-seat package Tuesday, with bidding starting at about $185,000.

It’s the first time in at least five years that a season ticket package for any professional sports team has been auctioned to settle a debt, said Clay Sanford, an IRS spokesman in Dallas.

Sanford said the agency’s privacy rules prevented him from identifying the ticket holder. But a document relating to the auction shows the federal government is owed $4.5 million.

Technically, the IRS is auctioning off two contracts offering licenses, or “options,” for six seats. Included in the package are 2010 season tickets for the six seats and parking for the 10 home games.

The licenses grant the holder the right to buy season tickets for a given seat for 30 years. Licenses for those seats sell for $50,000 each, said Cowboys spokesman Brett Daniels.

That would be $300,000 for the six licenses up for bid.

All of the seats are in section C110 between the 40 and 50 yard lines on the lower level, the first level up from the field. The auction includes parking for the 2010 season.

We should tell you that you’ll also have to pay an additional $70,000 “still due on the contracts and to cover transfer fees.”

IRS auctioning off Dallas Cowboys seat package [DMN]

IRS Not Just Going After Loose Change: Audits of Millionaires Rising

So this morning we learned that some IRS Agents decided to get huffy with a taxpayer over a sum that was less than a sketchy gas station party favor.

With this in mind, the more affluent of you may think that the IRS was finally recognizing that the millionaires in this country are the ones that make things happen. If the IRS would just BTFU and let the rich do their thing we’d get this economy back to blowing asset bubbles.

Unfortunately, Doug Shulman has remained steadfast in his commitment to making millionaires’ life hell by virtue of increasing the number of IRS audits on the wealthy.


According to a report in the New York Times, audits of individuals that earn at least $1 million are way up, “The federal agency increased its audits of taxpayers who earned $1 million to $5 million by 33 percent last year compared with 2008.” And if you’re in an even higher class of Joneses, your chances of getting audited are going up too, “[T]he I.R.S. increased its audits by 16 percent for those earning $5 million to $10 million last year. Audits of those who made at least $10 million rose by 8.5 percent, according to the data.”

The Times quotes a tax expert, Richard Boggs of Nationwide Tax Relief who then says the unthinkable (our emphasis):

“The I.R.S. is getting smart,” he said. “They are starting to better leverage their time, resources and talent in order to collect the most money. There is a definite shifting of the tide.” He said audits of those making at least $10 million rose slightly less than for other categories because so many of the ultrawealthy were already being audited.

We’re sure Mr Boggs is a top-notch tax guru but there is strong evidence that suggests that the IRS will still try to collect less substantial sums.

However, we have to admit, the numbers don’t lie. Millionaires out there, your chances of getting audited are going up and that sucks. But what should make everyone really nervous is the Service attempting to collect your loose change. Next time you see a nickel on the ground, we suggest you leave it there.

I.R.S. Says Its Audits of Wealthy Are Rising [NYT]