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TRAC Says IRS Audit Rate for Wealthy 'Sharply Declined'

For many years, Tax Analysts and the Transactional Records Access Clearinghouse (TRAC) have vigorously exercised their rights under the Freedom of Information Act to obtain authoritative information from the IRS. Although the two public interest organizations have had a somewhat different focus, the ultimate goal was the same: to better understand how the IRS was going about achieving its difficult mission. Now TRAC and Tax Analysts have joined forces to offer a new series of monthly reports on a range of enforcement subjects.

Tax Fraud — Prison Sentences of 1 Year or More, July 2008

The latest available data from the Justice Department show that during July 2008 the government reported 23 new tax fraud prison sentences of 1 year or more. According to the case-by-case information analyzed by the Transactional Records Access Clearinghouse (TRAC), this number is down 14.8 percent over the previous month.

The "April Effect" — IRS Prosecutions Timed for Tax Season

As tax season approaches each year, the number of news stories on tax prosecutions seems to grow. What has been unclear is whether this is merely a function of heightened media interest in prosecutions for tax offenses when the public's attention is on filing their taxes or if tax prosecutions are actually timed to peak during the early weeks of spring.

IRS Convictions for May 2009

The latest available data from the Justice Department show that during May 2009 the government reported 82 new convictions for these matters. Those cases were referred by the Internal Revenue Service. According to the case-by-case information analyzed by the Transactional Records Access Clearinghouse (TRAC), this number is down 4.7% over the previous month.

The comparisons of the number of defendants convicted are based on case-by-case information obtained by TRAC under the Freedom of Information Act from the Executive Office for United States Attorneys. (See Table 1)

When monthly 2009 convictions of this type are compared with those of the same period in the previous year, the number of convictions was up (3.9 percent). Convictions over the past year are still much higher than they were five years ago. Overall, the data show that convictions of this type are up 10.2 percent from levels reported in 2004.

Internal Revenue Service

The nation's largest tax collection agency. If you didn't get an economic stimulus payment in 2008, you may be eligible to receive the recovery rebate in 2009. Check the IRS's Economic Stimulus Payment Information Center for details on eligibility and applicable amounts. For help resolving tax problems that have not been resolved through normal channels you can contact the National Taxpayer Advocate Service, an independent organization within the IRS that employs taxpayer advocates for all 50 states and the District of Columbia.

Tax Watchdog

Every year, about $345 billion in federal taxes are either late or unpaid, according to the IRS, ripping open holes in budgets and shortchanging schools and public safety. That forces taxpayers to cough up more than their fair share, tax experts say. About $2.5 billion went uncollected in Michigan between 2000 and 2006.

Liens are filed when taxpayers ignore government pleas for payment. Tax liens are like tar. They stick to everything - homes, cars and income. According to the IRS, liens give the government a legal claim to a person's or company's property. Liens serve as security or payment for the tax debt and a red flag to creditors.

There are a variety of reasons people don't pay. Some can't afford to and some refuse while others miscalculate or receive bad advice. Unpaid taxes can lead to prison - just ask actor Wesley Snipes.

This blog will focus on state and federal liens and identify those who don't pay income, business and property taxes. We will gather our information from public records, interviews and Detroit News archives.

Tax.com

The Tax daily for the citizen taxpayer!

State Tax Officials Using Clues From Social Networking Sites

Some state revenue collection agents use Internet social networking sites to find delinquent taxpayers, said collection managers sharing tips August 18 during the Midwestern States Association of Tax Administrators' 49th annual conference. North Dakota hosted the webcast conference.

You Have the Right to Tax Representation

If you have been contacted by the IRS or your state's Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so, contact us at 888-466-4706 or fill out our online form without delay for a free confidential initial tax consultation.