TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, January 5, 2017

The IRS Scandal, Day 1337:  The IRS Is The Third Biggest 'Tax Offender Of 2016'

IRS Logo 2Taxable Talk: The 2016 Tax Offender of the Year, by Russ Fox:

Every year I hope that I won’t find any deserving individuals of the Tax Offender of the Year Award. To win this award, you need to do more than cheat on your taxes; it has to be a Bozo-like action or actions. As usual, we had plenty of nominees.

Coming in third this year is the Internal Revenue Service. What did the IRS do to deserve this award? Well, we have the IRS Scandal; it’s still unresolved. If we were to believe the IRS nothing untoward happened! I’m sure that’s why Commissioner Koskinen faced an impeachment resolution. And remember the data breaches? It wasn’t 104,000 people who were victimized back in 2015 (the “Get Transcript Hack) nor was it 334,000 taxpayers. There were over 700,000 people impacted (and over 500,000 unsuccessful attempts)! As Joe Kristan says, “The IRS: Protecting your identity since 1913.” Or not.

http://taxprof.typepad.com/taxprof_blog/2017/01/the-irs-scandal-day-1336the-irs-is-the-third-biggest-tax-offender-of-2016.html

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Comments

You're not kidding, Professor. And here's another one. Scammers are sending out fraudulent CP2000 notices, but you know who else is? Our own IRS. And this is when it happens: A paper return is filed but leaves off income items (or puts it in different place than IRS expets), well when the return runs w/ income items runs through the Automated underreporting software, the software stops at line 33 for 6251 AMT, leaving off any adjustments for actual tax. The result? Could be 5, 6 or I guess even possible 7 figures on a bogus notice. The reason I argue fraud is AUR knows about this error has told IRS to fix it but IRS refuses to fix it, yet the IRS continues to send out automated CP2000s. More here: https://www.irsmedic.com/2016/12/22/irs-fraudulent-notices/

Posted by: Anthony E. Parent, Esq | Jan 5, 2017 8:48:23 AM