IRS agents pushing audits without proper authority? No, they wouldn't do that. Would they? 

A Treasury Department Inspector General for Tax Administration (TIGAT) investigation turned up the disturbing fact that 97 percent of a randomly selected sample of audits were conducted without proper prior authorization.

Paul D. Caron, the inspiration behind TaxProfBlog, points to the IG's summary of what it found:

"IRS employees made decisions to survey tax returns without proper approval. From a statistical sample of 311 surveyed tax returns, TIGTA determined that 246 required the Planning and Special Programs function to concur with the group manager’s decision to survey the tax return.

"However, group managers did not follow guidelines and surveyed 238 (97 percent) tax returns without approval from the Planning and Special Programs function.

"Additionally, in 88 instances, TIGTA could not determine why the tax returns were surveyed because justification was not included in the case files or did not support the decisions to survey the tax returns.

"TIGTA projected the IRS could have examined 840 additional tax returns and proposed additional tax assessments totaling $1.7 million over a 5-year period.

"For 278 (89 percent) of the 311 surveyed tax returns, TIGTA found IRS employees did not follow procedures when surveying tax returns with ATAT issues.

"TIGTA projected 196 taxpayers’ rights could have been jeopardized under Internal Revenue Code Section 7605(b) because the IRS surveyed tax returns after contacting taxpayers. Furthermore, surveyed tax returns with ATAT issues are not subject to the quality review process."

Next question: Who within the IRS will be held responsible and what will be the consequences, if any? Go here for more from TaxProfBlog and go here for the original TIGTA report.

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Mark Tapscott

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