1. IRS audits half of 1% of 1040 returns.
2. This is a Deadly “00.5”. A license to kill cash.
3. Only 00.5% means 99.5% escape IRS audits
A letter to Charles Rettig, IRS Commisssioner:
Happy Valentine’s Day. We think you have the TOUGHEST JOB IN AMERICA.
I’ve had 44 VALENTINE’S DAYS in Public Accounting since 1966. I am a Tax CPA.
You have been the IRS Commissioner since October 1, 2018. Good Luck with the CHAOS that exists in our Revenue System.
It is not your Fault that most of the IRS System was SHUT DOWN for 35 days at the start of the 2019 Tax Filing Season.
Our CPA office in Spokane, Washington State has a suggestion for you, should you decide to accept it.
“Don’t announce to U S Taxpayers that the IRS will audit less than 1% of tax returns filed with you for the 2018 year.”
The former Commish did announce that 7/10 of 1% would be audited by IRS. He was WRONG for 3 Reasons.
First, he was talking about the face-to face audits done by people, that is, by IRS Auditors.
Second, the number is about .5% for 2016.
Third, the IRS has a computer audit program to “Match” IRS income forms (W-2s, 1099s, K-1s & others) to 1040 Forms.
The computer matching program is an excellent 100% tracing audit from Income Forms to 1040 Forms and it is very accurate & effective.
The announcement you should make is that “Our computers will catch it if you make an error or forget to report all of your income.”
Anson Avery, CPA