Tax Enforcement Continues to Decline
In a recent Treasury Inspector General for Tax Administration (TIGTA) report, the Inspector General found that a recent decrease in revenue agents and tax compliance officers contributed to a decrease in examinations overall. Although a greater number of partnership and corporation tax returns were examined, fewer individual tax returns were reviewed during 2011 and 2012. Citing challenges that include approximately 50 provisions in the Affordable Care Act that add to or amend the Internal Revenue Code, a decrease in the number of field agents, and continued funding decreases, fewer hours are available for enforcement. The report indicated better collections procedures resulting in increased cash flow on existing tax debts, but also noted that the amount owed in aggregate has grown 46% in the past five years. No recommendations were made with the report, and IRS officials did not provide any comments on it after having the opportunity to review the draft.
