1.10 While the process is not mandated by statute, the Service has, for over 60 years, provided taxpayers with an administrative alternative to litigating their tax disputes in court [Reg. § 601.106]. Now commonly referred to as Appeals, this administrative branch of the IRS generally has the final power and authority of the IRS to determine audit liabilities of taxpayers
On March 6, 2017, Arnstein & Lehr LLP partner Robert E. McKenzie was published in a USA TODAY article called, “Your odds of facing an IRS audit are 1-in-143.”
In the article, Mr. McKenzie is quoted saying, “The significance is it’s a good time to be a tax cheat in this country.” The employment of revenue officers, revenue agents and special agents has dropped 30% since 2010, the last time the audit staffing had an increase.
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