Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS to Cut Back on Individual, Corporate Audits in 2013
Author: Scarinci Hollenbeck, LLC
Date: April 22, 2013
Key Contacts
Back
The Internal Revenue Service is seeking out strategies to maximize its efficiency on a lower budget, and this may translate to fewer individual and corporate audits in 2013, a new report suggests.
Documents obtained by a non-partisan watchdog group, Transactional Records Access Clearinghouse, revealed that the IRS plans to reduce the number of staffers it places in corporate auditing departments by 18 percent, compared to the number of employees in this department over the last two years. The companies that will face less scrutiny from the tax agency include those with assets of $10 million or more during fiscal year 2013.
IRS spokesman Anthony Burke noted that while the agency will pare back its auditing of large corporations due to fiscal constraints, its audit rate remains high. Burke added that roughly 17 percent of corporations with assets exceeding $10 million face investigations in 2012, according to Reuters.
Some analysts argue that the declining audit rates may facilitate greater tax law violations committed by corporate entities and high net-worth individuals.
“The fact that audits are down potentially means less compliance, which is going to produce very difficult choices in the year ahead,” said David Burnham, the co-director at TRAC.
According to the report, the IRS will reduce the time it spends auditing the nation’s largest corporations by 27 percent, and reduce its audits of individual taxpayers by 7 percent. Smaller entities, such as private equity firms, will also see less attention from the IRS, which plans to reduce the time it spends investigating wrongdoing by 17 percent. Further, the redistribution of staff to other areas and departments does not take into account the effects of the sequester and across the board spending cuts, which will be put in place following the end of tax filing season.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.