In the fiscal year of 2013, the U.S Internal Revenue Service audits of individual taxpayers hit a new low since 2005. Less than 1 percent of individual tax returns were examined in 2013. Corporations and partnerships were audited less frequently, as well. In fact, the large corporation audit rate is down to 15.8%, the lowest since 2009. Revenue collected from the audits is also at its lowest since 2003, at only $9.8 billion.
The agency lost approximately 13 percent of its staffing and 8 percent of its overall funding since 2010, yet the workload had increased. For example, only about 60 percent of taxpayers who called the IRS were able to speak with a customer service representative.
What does this mean for a regular taxpayer besides longer wait time on the phone if they have questions? In order to generate the revenue needed and make up for these losses, the IRS will more aggressively pursue individuals and companies owing back taxes.
Skeptical? It’s already happening – over past three years, the IRS has increased the revenue intake from aggressive collection tactics and appeals by 6.3 percent, and the amount of people serving jail time is at its highest since pre-2000, with a 93.1 percent overall conviction rate.
If you find yourself confronted by the IRS for back taxes, seek help from experienced tax relief professionals. A knowledgeable tax lawyer can help you navigate through the complex Tax Code and protect your rights while achieving resolution with the IRS. The Tax Attorneys at US Tax Shield have years of experience dealing with the IRS, and helping their clients solve back taxes problems once and for all.