CHANGES WE HAVE DETECTED-IRS OVERSIGHT HEARING

March 8, 2014

TIGTA’S JOB IS TO REVIEW ALL AREAS OF THE IRS TAX ADMINISTRATION AND PROVIDE SUGGESTIONS FOR IMPROVEMENT TO AVOID WASTE. 

DUE TO FINANCIAL RESTRAINTS, THE IRS IS STRUGGLING TO ANSWER TAXPAYER PHONE CALLS, WHICH IS THE PRIMARY RESOURCE MOST TAXPAYERS USE TO CONTACT THE IRS TO RESOLVE THEIR TAX ISSUES. THE IRS ANNOUNCED PLANS TO IMPROVE THE WAIT TIME FROM 14 MINUTES TO 12 MINUTES IN 2014.

 

THE CORRESPONDENCE INVENTORY OF THE IRS INCREASED BY 330 PERCENT FROM FY 2010 TO FY 2014, WHICH MEANS ALL THE LETTERS TAXPAYER’S SENT TO THE IRS WERE NOT ANSWERED OR TOOK MONTHS AND MONTHS OR EVEN YEARS TO GET A RESPONSE.

 

IN 2014, THE IRS DECIDED TO NO LONGER PREPARE TAX RETURNS, PROVIDE TRANSCRIPTS OR PROVIDE TAXPAYER’S WITH THE STATUS OF THEIR TAX REFUNDS. ONLY BASIC QUESTIONS ARE NOW BEING ANSWERED BY TELEPHONE ASSISTORS.

 

TAXPAYER’S VICTIMIZED BY IDENTITY THEFT ARE ON THE RISE.  SAMPLING OF 100 CASES REVEIWED BY TIGTA, TOOK THE IRS AN AVERAGE OF 312 DAYS TO RESOLVE THE CASE AND AN AVERAGE OF 277 DAYS FOR WHERE NO WORK WAS PERFORMED AT ALL TO RESOLVE THE CASE.

 

ANOTHER AREA OF THE IRS IN DECLINE ARE IMPROPER PAYMENTS. ACCORDING TO “THE IMPROPER PAYMENTS INFORMATION ACT OF 2002”, THE IRS AND ALL FEDERAL AGENCIES WERE SUPPOSE TO ESTIMATE THE AMOUNT OF IMPROPER PAYMENTS WERE MADE EACH YEAR AND WHAT STEPS WERE TAKEN TO REDUCE IMPROPER PAYEMENTS. THE METHOD USED BY THE IRS FOR RISH ASSESSMENTS, WAS FLAWED. AS A RESULT THE ONLY AREA THE IRS HAS TRULY COMPARTMENTALIZED AS HIGH RISK IS THE EARNED INCOME TAX (EITC) PROGRAM. THERE HAS BEEN MORE PRESSURE ON TAX PREPARERS TO PROVE DUE DELIGENCE WITH REGARD TO RETURN REPORTING AND DOCUMENTS PROVING THE ELIGIBILITY OF DEPENDENTS FOR EITC.  EVEN WITH THE ADDED SAFEGUARDS IN PLACE, THE ESTIMATES REPORT IMPROPER PAYMENTS FOR EITC ROSE FROM $13 BILLION TO $15 BILLION IN FY 2013.

 

IN SEPTEMBER 2013, TIGTA REPORTED THAT IDENTITY THEFT HAD SIGNIFICANTLY RISEN AND THERE WAS AN INCREASE IN FILTERS TO PREVENT $2.5 BILLION IN FRAUDULENT TAX REFUNDS. EVEN WITH THOSE EFFORTS, THAT IS A 157 PERCENT INCREASE OVER THE NUMBER THE IRS LOCATED IN 2012.  THE IRS EXPANDED EFFORTS TO PUT LOCKS ON THE ACCOUNTS OF DECEASED TAXPAYER ACCOUNTS BY USING THE SS NUMBERS VERIFIED WITH THE SS ADMINISTRATION.

 

IN JANUARY 2O13, THE IRS STARTED A NEW PROGRAM WHERE BANKS WERE ALLOWED TO REJECT DIRECT DEPOSIT REFUNDS BASED ON MISMATCHES BETWEEN THE ACCOUNT NAME AND THE NAMES ON THE TAX RETURN. THAT HELD UP THE TAXPAYER’S REFUNDS WHILE BEING REROUTED BACK TO THE IRS FOR VERIFICATION.

 

TIGTA INVESTIGATED NUMEROUS IRS EMPLOYEES AS WELL AS TAX PREPARER’S WHO MISUSED THEIR POSITIONS OF PUBLIC TRUST AND COMMITED IDENITY THEFT RELATED REFUND FRAUD.  IN FEBRUARY 2013, THE DEPARTEMENT OF JUSTICE ANNOUNCED AN INVESTIGATION IN 32 STATES AND PUERTO RICO TO STOP IDENITY THEFT.  

 

IT IS BEST TO SEEK THE ADVICE OF A QUALIFIED TAX PROFESSIONAL LIKE AN ENROLLED AGENT, PARTICULARLY SPECIALIZING IN THE AREA OF TAX CONTROVERSY. WHEN YOU CAN’T GET AN ANSWER TO WHY YOU HAVE NOT RECEIVED YOUR TAX REFUND. IT IS REASONABLE TO ASSUME THAT YOU WILL HAVE A VERY DIFFICULT TIME GETTING AN ANSWER DIRECLTY FROM THE IRS, SINCE THEY ARE NOT ANSWERING THEIR MAIL QUICKLY AND PROPER TRAINING OF ASSISTORS IS ALSO DOWN. UNFORTUNATELY, THIS IS WHAT WE HAVE NOTICED AND WILL CONTINUE TO REAP FOR MANY MONTHS AND YEARS TO COME.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s