Monday May 16, 2022 – The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION recently conducted an audit and issued a report on May 4, 2022 – A Service-Wide Strategy Is Needed to Address Challenges Limiting Growth in Business Tax Return Electronic Filing.
“This audit was initiated because the IRS’s continued inability to process backlogs of paper-filed tax returns contributed to management’s decision to destroy an estimated 30 million paper-filed information return documents in March 2021. The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income.”
The IRS destroyed 30 Million information return documents! These information returns are required documents – taxpayers shoulder the cost and burden of producing these documents in a timely fashion. And the IRS destroyed 30 million.
Don’t worry – says the IRS – “There were no negative taxpayer consequences as a result of this action,” “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”
So, it is important that information returns are filed – and information returns should be expanded – but, if they are destroyed, there are no consequences.
Attorney Steven A. Leahy reviews this latest TIGFTA report today on Today’s Tax Talk.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649
