|(06 Apr 2009)
By many measures, financial service firms -- banks, investment advisors, insurance companies, etc. -- dominate the corporate world in the United States, and account for three-quarters of the tax returns filed by all large corporations. Despite the overwhelming importance of this now very troubled segment of the U.S. economy, however, the IRS in FY 2008 only allocated 15% of its corporate revenue agents to the agency group with the special expertise for auditing large financial service corporations.
The financial services group is one of five originally created by the IRS to improve and speed up all corporate audits. The other four industry groups are: communications, technology and media; retailers, food, pharmaceuticals and healthcare; natural resources and construction; and heavy manufacturing and transportation.
The apparently lopsided distribution of revenue agents to the financial services group is described in a TRAC report based on documents and data obtained under the Freedom of Information Act. The report is available at
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