IRS Audit, IRS Problems, Tax Audit
A former insider’s view of the BIG IRS Machine and what’s going on today
May 14, 2013 - IRS Audit, IRS Problems, Tax Audit
How can you play to win if you don’t know the rules? I have always focused on how to do things correctly. I want to know the rules of the games I play so I can play to win. And that’s what I want to give you, also.
When I was in law enforcement, I learned that there are some people who will never want to knowingly break the law. There are others who want to know what they can do to bend the rules. They don’t really want to break the law, but they don’t want to follow the straight and narrow path, either. And there are others who might have cared at one time, but don’t care anymore and they just want what they want. They care about themselves. They don’t think of anyone else involved.
The Internal Revenue Service is often in the news. But usually that news is to tell us, the tax-paying public, the changes in the tax law. Tax season is the time when the IRS wants to spotlight public figures who have done something wrong tax-wise. They get mileage out of these stories in trying to help the law-bending public understand the penalty of breaking the tax laws.
Tax season is never over. But today it is after April 15th. And the IRS is in the news again. This time IRS is the one in the spotlight. Somebody done somebody else wrong. We are being told that the IRS targeted specific groups. They did what some police people are accused of doing. They used profiling. They were on the lookout for groups that appeared to be more conservative than others. IRS is accused of denying or delaying the applications of groups wanting tax-exempt status.
The first group I think of as tax-exempt is religious. Other tax-exempt groups include scientific, literary and other charitable organizations. There are hundreds of other tax-exempt groups. Like social groups and fraternal societies, veterans organizations, political organizations. Don’t forget homeowners associations.
I’m not here to defend the IRS. I am just sharing with you some of what I learned as their former employee. When I was an auditor-in-training I was learning the ropes of the job of income tax auditor. What was my job? How do I do it well? As an employee of the federal government I had an honorable job and I wanted to do it well. It was the auditor’s job to see that the law was properly applied.
Even then, the IRS wanted me to know the penalty for stepping over the line. They have their own internal affairs division. IRS wants their employees to do their job properly. And if an employee chooses to cross the line, there is a penalty to pay. In most jobs those penalties may include time off without pay, demotion to a lower pay grade position, and even dismissal. Heads will roll.
Why does it take so long to discover this bad news? It takes time for cream to rise and It takes time for dust to settle. Before any case can be brought to trial, first someone has to be found out. Then evidence must be collected. Only the TV crime show can solve a case in 60 minutes.
When this kind of bad news goes viral, we can be glad to know that the system does work. Yes, one bad apple will spoil the whole barrel. That apple is removed. The barrel gets washed out. We begin again.
The IRS is here to stay. They are not going away. I play by the rules. When the rules change, I have to change my game plan. I hope I can help you, too.
Always to your lowest legal tax,
Nellie T Williams, EA