The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/that-said-imo-wed-benefit-from-another-round-of-24320051.aspx

Subject:  Re: The Cost Basis Crisis Date:  7/9/2006  12:35 PM
Author:  ptheland Number:  87719 of 121438

That said, IMO we'd benefit from another round of Taxpayer Compliance Measurement Program (TCMP) audits, a/k/a the audits from hell, in which the randomly selected victims have to prove everything.

Personally, I'd like to see that program done away with. It generates good info for the IRS to target their auditing, but it also generates a ton of ill-will with the unfortunate sops that get selected. And everyone they talk to.

Instead, I'd like to see random, statistic-generating, audits of just one or two items. Instead of proving everything on a return, select a few hundred or thousand returns and audit one or two items: filing status, wages, things like that. Then select another sample and audit something else. The downside is having to select a significantly larger number of returns to generate the necessary data.

Or on the returns that are selected for some other reason, add one or two unrelated items to the audit. That keeps from adding huge numbers of returns to the audit lists.

Either approach avoids the headaches of the TCMP audits, but still provides the IRS the data it needs.

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us