Wednesday, December 19, 2018

Go Audit Yourself


          Take any Shakespearean play of the tragedy variety and you already know the outcome. At the height of his treachery the villain is forced to confront his own humanity and to perish with friends and loved ones shedding a questionable tear. In 2016, the Internal Revenue Service started a program of on line self-audit. It was actually an online audit program where individual taxpayers were able to use an online portal to communicate with the IRS. The program allowed documents to be attached and answers to questions posed by examiners to be posted. Imagine the cost savings to the IRS in this kind of program. Add this to the service’s own data mining which will expose suspicious activity and identify cases for possible audit and you can almost see the future. This program was a mere test of the online audit concept. Surprisingly, many taxpayers said they were satisfied with the program. They have course could’ve been the taxpayers who gave the right online responses.

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