The notice boom New IRS compliance practices mean big changes for tax pracs

摘要

More Internal Revenue Service notices are going out to taxpayers than ever before. In fact, since 2001, notice volume has increased 670 percent, to 201 million sent in 2009. This is the IRS being smarter about tackling what it considers to be a big problem. In 2001, the IRS conducted a study to identify the amount of taxes that goes unpaid each year. The result: a $345 billion tax gap - stemming mainly from a complicated and changing Tax Code, often vulnerable to fraud. The IRS quickly made plans to close this gap while maintaining itself as a customer service organization. The result: improved technology and information systems that isolate compliance areas - and a dramatic increase in IRS notices. For accounting firms, this means more work and more contact with the IRS, because two thirds of taxpayers rely on their accountant each year for compliance. While this sounds like a potential problem, it can represent a tremendous opportunity to enhance client service and further strengthen the client-accountant relationship.