New IRS Strategic Initiative: Increased Audit Activity On Its Way?

Originally published in The Legal Intelligencer

Exposure of fraudulent and unscrupulous tax preparers, along with increasing voluntary compliance with federal tax laws and closing the tax gap (currently estimated to be in the billions of dollars) are among the goals of the Internal Revenue Service's five-year strategic plan released April 27, and runs from 2009 through 2013. The IRS hopes to accomplish the objectives of the plan through a delicate balance of service and enforcement. According to Doug Shulman, IRS commissioner, the IRS has two overarching goals for the period covered by the plan.

While the first goal, namely "to improve service to taxpayers to make voluntary compliance easier," may have a positive effect on taxpayers, the second goal will likely cause pain. The second, and, according to Shulman, equally important goal "is to enforce the law to ensure everyone meets their obligation to pay taxes. We will be timely in our enforcement actions and