There are many conflicts between the IRS and taxpayers whereas the IRS says a taxpayer owes more taxes and the taxpayer disputes it. Do you think the IRS is typically right in these instances or the taxpayer?
I'd have to see some stats on that. All I know is the IRS definitely screws up a lot. We got a $16000 fine for something we didn't even do, and had just a few days for payment. We disputed it and they knew they messed up.
I prepared taxes for many years. I estimate that the taxpayer was right in about 75% of the cases I was involved with. Usually a brief explanation or additional documentation cleared the case.
I think it's a mix of both.
As a litigation accountant working on a tax fraud case, it really goes both ways but i would favor the IRS is more often correct.
Does anyone have any %s as to how often the audit is in favor of IRS? I was audited and got back $600 more!
I can share our experience. I'm including in person and by mail audits.
Maybe 5 owed more.
Another 30 or so were no change reviews.
Around 10 got more back.
No, it's unusual if the taxpayer actually owes what the IRS is asking for. The IRS knows that. They are assuming the worst trying to get a response.
An example is unreported stock sales. Not knowing the basis the IRS bills using the gross.
The rich have CPAs,
Everybody else has money extracted from their pay checks and have to beg to get some back.
The system isn't fair.
The IRS is pursuing me for more than my net worth.
I fully dispute it but it's too complicated & expensive to fight.
There is nothing fair in our current system.
There would be no good reason for the taxpayer to ever be wrong - he has all of the relevant data. The dispute is likely the result of incomplete data being provided to the IRS, or an error on the part of the taxpayer, both easily corrected.
I actually had an issue like this with the IRS this summer when one day out of the blue I got a letter from them saying I owed $2,000 in taxes for 2012 when in 2012 I only made about $2,000 working for 3 months during the summer...
... Obviously I disputed it and won but was still pissed off that they would make such a false accusation.
In 23 years of dealing with the IRS I've never seen them make a false accusation. The IRS can only work with what's been provided to them. We've seen input errors too.
While it sometimes takes time to fix issues they have always got it right.
I'd say the IRS would be right most according to the law since that's what they do. Morally the taxpayer is right.
I will never agree with the tax collector......the IRS should be abolished
Having worked for a tax agency, nine times out of ten the agency is right. Most people, companies, and even accountants have trouble filling everything out correctly and understanding the different forms and requirements.
Hmm.. Interesting timing for this poll..
Got IRS on the brain EB?
They must be bird hunting right now :)
The IRS recently tried to tell me I owe $2600 for the year 2012. I phoned up my tax lady, she spoke to the IRS, and it turns out they were completely wrong and they actually owe me for that year.
Most of these IRS "investigations" are just computer-generated reports. They seem to have a high margin of error. I guess they just hope you'll assume they're correct and you'll blindly pay up.
Or they sense conservatives.
I'm not sure what you mean by that.
hi lip, what do you mean by your comment?
Umm the fact that the irs has been illegally targeting conservative groups for audits. They impeached Nixon for expressing enthusiasm for such. Obummer did it,
Of course you don't drunk. Facts seem to elude you.
Well I'm not a conservative. Soooo yeah.
Facts =/= conspiracy theories. One day you'll learn.
Facts, libiots drinking their own koolaide.
Same thing happened to us drunk! But they went for 16,000. It was not okay.
I don't know who's more right, but I'll side with the tax payer over the behemoth that is the IRS.