TRAC: IRS to Reduce Audits of Big Businesses by 18%

The Transactional Records Access Clearinghouse at Syracuse University has released a report, IRS Audits Slump, Staff Down Long-term Impact Uncertain:

The IRS plans to expend 18% percent less effort auditing businesses with assets of $10 million or more compared with just two years ago, according to a very timely IRS planning document.  

For the same period, the IRS also projects a 14% drop in the amount of available time for the specialized revenue agents it needs to conduct these audits in FY 2013 — the year ending on September 30 — compared to what it was in FY 2011.  

These declines — neither of which take into account the probable impact of the sequestration cuts in the months ahead — were described in a special agency report now being made available to the Transactional Records Access Clearinghouse (TRAC) on a monthly basis. This series of internal IRS management reports — the last one covers the period ending in January 2013 — are provided by the IRS thanks to a court order granted TRAC as a result of a suit filed under the Freedom of Information Act.

IRS Large Business and International Division Direct Examination Staff Years

	FY 2011	FY 2012	FY 2013	Change 2013 v. 2011
	Annual Plan
Total	3,567	3,320	2,935	-18%
Individual	189	173	306	62%
Corporations	1,103	1,043	807	-27%
Partnership	191	196	159	-17%
Subchapter S Corp	184	180	115	-37%
Coordinated Industry Cases	1,083	1,081	1,011	-7%
Other	816	647	537	-34%
	Actual Revenue Agent Years
Total	3,319	3,155	2,852	-14%
Individual	258	214	283	9%
Corporations	864	912	762	-12%
Partnership	211	215	179	-15%
Subchapter S Corp	185	225	205	11%
Coordinated Industry Cases	1,011	952	865	-14%
Other	790	637	559	-29%