Dec 20, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
As promised joining us on the line now is Paul Gil from pro publicly here to talk about. But really what's happening at the IRS with regards their budget in what it's turned the agency in to Paul thanks for joining us that we appreciate it. Yet. Paul can talk a little bit first just in terms of what has happened to the budget for the IRS over the last decade what kind of impact have we seen. Yeah and two billion dollars and in today's dollars at that point and what the cuts started. The enforcement staff has been cut by 13. And that just means they're able to do let those audit are down battery down by more than 40%. There simply collecting you're debt in the used to no good reason except for the is that you're able to do it. Is really impact across the board in terms of how many actions they're taking money that the. So let's talk about that the two errors that come to mind for me where you see. Probably most violations you have. Effectively what I call you know the forms of fraudulent returns where someone might submit you know 200 or 300 returns from one addressed. Trying to get tax credits in something like that. Ian you know a known fraud something along those lines are we seeing any changes as far as enforcement. In being able to go after those kinds of things. Yep ID theft with a major major problem and it that a problem that really hit I would state I think that many years ago it really peak. Which unfortunately was the same time the budget was being the last you know sort of thing at again what can agree that we like here it is to get a hold on. But they're really struggling with that and it really took over their criminal enforcement. The veteran. Dilbert but it can be read certain you know these ladies that issues that they were doing far fewer the other types of them worked national exhibition that is the but that there there were a lot of changes they put him in terms trying to terrify people that anything like that in my understanding of that. The peak of that problem has passed over but it still but I think that it does that position. So in terms of then deal with ten of the more conventional audits that we think of where. You know someone takes a bigger charitable deduction that they may than they actually made or someone. Tries to use a home office deduction where they don't have a home office. What kind of numbers are receding as far as agents that are actually looking at those types of things and what types of recoveries are we seen. Yes the revenue agent of the idea audit the auditors to do that kind of more complicated sort of work there and a comparison Beecher is. They're now fewer than 101000 that it region that the service in the last time that was true was packed to reach. Last time yet fewer than to if he and on the people get a reaction well you know on target computers now but it is really depict people artists. And you want people oddity you don't be audited by computer off on it out of the system you know they. But they happen to be very frustrating. And that when it comes to the auditing business owners. Corporation. That's where at the drop in the number of revenue agent has been felt the most and you know the comparison we got a piece that they're built they're bringing in about ten billion dollars. Let each year it. Revenue growth from audit. Which effectively means there are a ten billion dollars in taxes that people that there. Paul I know that it's not popular to talk about. Giving the IRS a bigger budget just people would typically think oh gee you know I'd prefer to pay less taxes if possible. But is there argument to be made if you have better collection going on than the effective rates for taxpayers who actually don't do anything fraudulent would be lower than. Yeah that's one of an argument people make for bird for beating up the IRS to make sure that the effective tax rate. Are are what they seem to be on paper. And also as a fairness argument in one thing that he is that. An area and enforcement has gone up of people is going after people ignited by L the tax return. And because it is really resource intensive. Yes but it people tracked down a couple of PO and the period. I'm let's just bought off the table I don't think anyone think that. Read on the Garrett no longer really pursuing people did at. Paul what is this done anything as far is changing. Then make up of people who were at the iris or long time people they're discouraged and leaving are you still seeing. You know people with experience to be able to go after these types of tax crimes are they still sticking around. Yet people in the spend their whole career there. It yet there really elderly. Public that the work but at the really older workforce over about a that are on the employees are eligible for retirement. Now and the real year is that people are leaving without. You know training the people behind you so draconian and there's lack of training to everybody for training in that it at a ticket these PowerPoint slide but missed a lot about them complicated that shocking that way. There's the concern is that there workforce that is meaning it is. Not as well trained. And that's it for taxpayers that can make or worse experience I can make it that it reinforced now that. But it may dealing with terrorists more people. Four in terms of people or do. Right very good Paul thanks for joining us they we appreciate it. Why Paul Kiel from pro Republican talking about the IRS and if you want if you pay your taxes you want to be strong virus or if you're cheater you know don't. It's and it's fair bit as having eight capable IRS doesn't mean you know Serbian pay any more or less tax you doing what you're supposed to do. I think people associate the iris we have to you know have more agents means higher taxes. Not necessarily know he didn't factor could be the op exactly.