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  Policy and Public Interest Groups
Project on Government Oversight (POGO)
April 15, 2016

IRS Corporate Tax Recovery Suffers After Deep Budget Cuts
By Daniel Van Schooten

The Internal Revenue Service (IRS) has shortened the average time spent per audit for large corporations by a third over the past five years, according to a research organization that gathers and analyzes government data. This shortening of audits has also coincided with a drastic reduction in the recovery of additional taxes through those audits. The recent report by the Transactional Records Access Clearinghouse (TRAC) examined IRS auditing of big corporations—those with at least $250 million in assets—and makes for timely reading during this year’s tax season. Over the past five years, the average number of hours IRS agents spent on each of these corporate audits has gone down by 34 percent, and additional taxes recovered from the companies as a result of audits has fallen by 64 percent, TRAC reported. “Unless there has been a dramatic improvement in the way big corporations complied with complex requirements of the tax laws over the FY 2010-2015 period, this would mean that the potential loss to the government now amounts to at least $15 billion per year,” TRAC said.

Transactional Records Access Clearinghouse, Syracuse University
Copyright 2016
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