Audit of Individual Income Tax Returns by the Internal Revenue Service: Department of the Treasury : Report to the Joint Committee on Internal Revenue Taxation : Congress of the United States |
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additional tax Adjusted gross income advise the taxpayer appeal rights APPENDIX ask taxpayers audit findings audit report Cheyenne City service center correspondence audit determine DIF correspondence district office audit erroneous adjustments error rate evaluate examiner examiner's findings examiner's supervisor explain failed to respond fiscal year 1975 four districts gather documentation group managers head of household income tax returns individual income tax initial contact letter Internal Revenue Service involved tax adjustment IRS office itemized deductions justments Kansas City service la Total math error memorandums National Computer Center Number of returns owed more taxes payers percent proposed adjustments question recommend that IRS records request a meeting respond to IRS responses returns for audit review staff sampled population selecting returns service center audit setting mathematical tax adjustment errors tax and penalties tax auditors tax change tax laws tax liability taxpayer agrees tells the taxpayer told they owed unallowable items program understand
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Page 3 - The DIF process is a mathematically based system that involves the assignment of weights to the entries on returns and the production by computer of a score for each return. The higher the score, the greater the probability of error in a return. Returns identified by DIF are then screened manually and those confirmed as having the highest error potential are selected for examination.
Page 50 - Court, and the Government generally will not be authorized to sell the taxpayer's property until after the taxpayer is given an opportunity for judicial review. Thus, the rights of both the Government and the taxpayer should be protected, and the objective of our recommendation will be met. 16 APPENDIX I APPENDIX I Department of the Treasury / Internal Revenue Service / Washington.
Page 70 - Enclosures 18 APPENDIX II APPENDIX II PRINCIPAL OFFICIALS RESPONSIBLE FOR ADMINISTERING ACTIVITIES DISCUSSED IN THIS REPORT Tenure of office From To SECRETARY OF THE TREASURY: William E. Simon George P. Shultz COMMISSIONER OF INTERNAL REVENUE: Donald C. Alexander Raymond F. Harless (acting) Johnnie M. Walters ASSISTANT COMMISSIONER (COMPLIANCE) : Singleton B. Wolfe Harold A. McGuffin (acting) John F. Hanlon John F. Hanlon (acting) ASSISTANT COMMISSIONER (ACCOUNTS, COLLECTION, AND TAXPAYER SERVICE):...
Page 57 - However, we do not believe it is possible to eliminate this problem completely without a substantial simplification of the tax law. The Federal income tax law is complex and many small Income taxpayers lack both the knowledge of taxes and the personal confidence to challenge the examiner's findings.
Page 33 - ... to provide a statistically valid measure of the general quality of district audits, thereby alerting management to problem areas.
Page 33 - ... of erroneous audit findings in agreed cases could be alleviated if, as discussed previously, taxpayers are given adequate explanation for the changes to their returns and are properly advised of their appeal rights, including the right to request a meeting with the examiner's supervisor which would result in a review of the examiner's findings.
Page 3 - Revenue agents usually have a college education with a major in accounting and are used to audit more complicated tax returns.
Page 26 - ... Some examples of such issues are personal expenses disguised as business, convention or education expenses and determination of income from tips, prizes, awards, gambling, or miscellaneous independent activities. Soliciting Agreements (l)Upon completion of an examination, the examining officer will explain the basis of the proposed adjustments to the taxpayer or his representative, and make an effort to obtain an agreement to the proposed tax liability. If necessary, the examining officer will...