The following are someinteresting and frighteningfacts on the IRS provided bySandy Botkin, a former IRSattorney, author of (McGraw-Hill; 2003), and CEO of the TaxReduction Institute (www.taxreductioninstitute.com):
Your return is scanned andchecked for math errors at the local servicecenters. It's then sent to the centerin Martinsburg, WVa, where it's given ascore using a computer program knownas the Discriminant Function Systems.The higher the score, the better thechance that it will be examined immediatelyfor problems.
The IRS pays a 10% commission forpeople to rat on others.
The IRS audits approximately 68%of all final returns.
IRS special agents are promotedbased on indictments.
Both revenue agents and taxauditors get promoted based on thenumber of cases closed and not on themoney collected.
There's no privilege protecting yourcommunications with your accountant.
The IRS manual states that,"Hasty agreement to adjustments andundue concern about immediate closingof the case may indicatethat more thorough examinationis needed."
Make sure your returnlooks professional and completeso that it won't stand outfor any reason.
People who do theirown taxes increase their chances of anaudit because the IRS perceives thatthey don't know as much as a professionalaccountant.
Have a CPA, enrolled agent, orattorney prepare or review your taxreturns to help minimize the chancesof an audit.
It's trueâ€”the IRS does want youto be intimidated.
The taxpayer service representativesanswered 6 of 27 yes/no IRS questionscorrectly, according to a recentsurvey. They are not to be trusted.
The IRS is not bound by theanswers provided by their taxpayerservice representatives.
IRS tax auditors are generally toldwhat to audit, how to audit, and almostwhat to think.
Only about 1% of the nation'stax revenue is obtained through audits;98% of the revenue is obtainedthrough "voluntary" compliance frompeople who have not been audited.