IRS just released their Inflation Reduction Act “Strategic Operating Plan” and I realize we don’t have time to read it right now because, you know, Tax Season.
I did want to make one humble, yet vehement suggestion, though, as we head into finalizing a bunch of tax returns for clients whose tax situations are SIGNIFICANTLY IMPACTED by the new IRS Strategic Operating Plan.
My humble, yet vehement suggestion is this:
Although the 1,000% increase figure is not specifically shown in the IRS Strategic Operating Plan, IRS executives have mentioned in media interviews that the goal is a return to 2011 audit rates, which were 10x (or 1,000%) higher than today’s rates.
Over $400,000 income has become the cut-off for fitting into that “high-income taxpayers” category.
Correct me if I’m wrong but the next 11 days is one of the main times of the year where we are working on tax returns with $400,000 or more income–yes?
Therefore, let’s ask ourselves pertinent questions, such as:
- How does the IRS threat / promise of dramatically increased scrutiny of high-income taxpayers impact my preparation of higher-income tax returns?
- Should I be communicating about this issue with my higher-income clients? If so, how?
- Do I need to charge more for preparing high-income tax returns, being that we are expecting more scrutiny from IRS on these returns?
- If a client gets audited, am I going to represent that client in the audit, or do I need to connect with another tax pro or two who handle a lot of audits, so that I can refer the client with confidence to a tax pro I trust?
- This tax return I’m working on right now has a number of “potential issues” on it, and it’s giving me that “certain feeling” in the pit of my stomach–do I even want to work with this client, or should I let him or her “fly free” and find a different tax preparer?
Food for thought…
If you’re concerned about these types of issues, we hope you’ll be happy to know:
In response to this new “beefed up” IRS, Pronto is “beefing up” the amount of IRS Tax Problem Resolution training that we include in our Membership Programs, to ensure that our Members do not live in fear of a new beefed up IRS, but rather you all enjoy new OPPORTUNITIES in this new environment:
- ALL Memberships now include the new “Handing the IRS” training course, and
- The Dream Team Membership now includes an additional 10 training courses addressing more advanced Tax Problem Resolution topics, such as releasing IRS levies, audit representation, and how to use the IRS appeals system.
If you have any questions about which Membership is right for you, or if you’re an existing Member and you need help accessing any of the training & support resources included in your Membership, please always feel free to reach our support team at support@prontotaxschool.com or 310-422-1283.
