Taxpayers thinking of trying to put one past on the IRS think twice this tax filing season. In a recent report by the GAO (Government Accountability Office), they recommend that the IRS begin their enforcement efforts during the returns processing stage of the process as opposed to after the return is filed. In the past a return would be filed, only for a few years to go by before the IRS sent the taxpayer the dreaded “nasty gram”. Well those days are a thing of the past.
There are two major areas recommended in the report where the IRS could audit returns while processing, one are is the eligibility of the child and dependent care tax credit for married filing separately taxpayers. The other area is verifying the EIC (earned income credit) claims by non-custodial parents. These are the two major areas where tax return claims could not be verified.
So taxpayers that think that can get one by on the IRS beware, for you will be caught. If you look at the situation another way the IRS is doing you a favor, instead of catching you later and interest and penalties adding up; you will be caught early and won’t owe as much. Either way it is not a good idea.
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