| |
||
| August 15, 2005 | The
Newspaper of the NYSSCPA |
Vol.
8, No.15 |
IRS: Bridging the Tax Gap
William P. Marshall, of the IRS’ Small Business/Self-Employed Division, North Atlantic Area, talks figures and strategy during the July 26 Strategic Planning for Your High-Net-Worth Clients Conference. According to the region’s director of examination, the IRS brought in $43 billion in revenue through its enforcement efforts last year and audited more than 200,000 high-income earners. Given that a study of 2001 individual returns revealed a tax gap in the neighborhood of $330 billion, with an estimated 18 percent of the taxpayer base in noncompliance, it’s no surprise that increased enforcement as well as improved taxpayer services and modernized technology processes will be the primary objectives for its long-term strategic plan.
“The focus is coverage across all filers,” Marshall said. “We want to touch on all entities and types of returns.”
In the last two years, the Service has hired 800 enforcement agents. By the end of 2005, Marshall said 1120 S corps can expect a wave of examinations, to be followed by one on partnerships. Increased scrutiny of individual returns is about three years away. Currently, he added, the IRS is conducting about 1,000 investigations into tax-shelter promotions.
The NYSSCPA’s Taxation of Individuals Committee, chaired by Alan J. Dlugash, of Marks Paneth & Shron LLP, sponsored the Foundation for Accounting Education conference. To the right of Marshall sits (from right to left) conference cochair William H. Jones, of Marks Paneth & Shron LLP; conference cochair Stephanie Keating, of Weiser LLP; conference cochair Israel Keller, of Oram Yelon Bernstein P.C., and Ralph J. Anderson, Jr., of Weiser LLP.
