In July, the IRS published a report on its Strategic Plan for the years 2022 through 2026. The report features many lofty goals, including increasing service capabilities, consolidating enforcement efforts, recruiting a more advanced workforce, and modernizing existing infrastructure.
All these proposed efforts are based upon investment from the federal government, which comes with strings attached. To be clear, the IRS would not benefit from budget enhancements if the government did not believe they could make back that money and more through civil and criminal tax enforcement actions and other aggressive adjustments to strategy.
Therefore, many taxpayers are rightly concerned about the increased chance that they could soon face an audit or criminal tax investigation. To get the help of the Tax Law Offices of David W. Klasing in assessing your own situation, call us right now at (800) 681-1295 or schedule online here.
Contents of the IRS’ Five-Year Strategy Report
The IRS’ five-year strategy was announced through Publication 3744, which can be found in its entirety on the agency website. The plan was developed by the strategic planning team within the Office of the Chief Financial Officer. According to the document, the report included input from IRS leaders and employees, advisory groups, and other key stakeholders, including the Department of the Treasury.
The strategy centers around four key “goals,” as the report describes them: service, enforcement, people, and transformation.
Service
The IRS suggests that the first goal of their five-year plan is to provide quality and accessible services to enhance the taxpayer experience. As the tax code becomes increasingly more complicated, so too does compliance. This affects those taxpayers in underserved community populations at a substantially higher rate. Not only are these taxpayers more likely to struggle with remaining compliant with the tax code, but they are also much less likely to actually obtain the benefits that are baked into the tax code for their own interests.
A critical aspect of the service goal is growing the IRS’ digital service capabilities. More and more taxpayers and tax preparation professionals are growing to expect the government to shift to online services that represent a more accessible channel of communication and disclosure for taxpayers across the country.
According to a Comprehensive Taxpayer Attitude Survey Report from 2020, four of the top five IRS services that are most important to taxpayers are digital services. In their strategic plan, the IRS makes it clear that they intend to expand their outreach and service areas to account for the underserved by making use of developing technologies.
Enforcement
Though the current administration has poured funding into the IRS, the agency remains overburdened with a workload that is difficult to meet while using past strategies. All the while, the technological sophistication of tax evaders grows.
Among the IRS’ responses contained in their five-year strategy is the plan to proactively identify current and emerging fraud schemes using real-time intelligence and analytics. This will involve the consolidation of fraud-related compliance efforts to streamline operations and better allocate resources.
The IRS’ Office of Fraud Enforcement has also been investing in top-tier blockchain tracing and virtual currency analytics tools for compliance agents, such as the tracing software that the government began licensing from Coinbase last year. The new Virtual Currency Learning Academy provides all IRS personnel with unlimited access to various levels in training on cryptocurrency, blockchain tracing, and anti-money laundering compliance, as well as several other topics.
People
One of the less discussed issues plaguing the IRS today is the rising rate of attrition and retirement. More than 60% of the current agency workforce will be eligible for retirement within the next six years. According to data in the report collected by the Partnership for Public Service, the IRS’ attrition rate is 7.3%, much higher than the average attrition rate across federal agencies of 5.8%.
To counter this, the IRS is implementing recruitment and succession planning strategies and lobbying for additional funding from congress to support federal hiring initiatives.
Simply keeping the workforce at an even level will not be enough to achieve the IRS’ goals, however. The report emphasizes the IRS’ continued reliance on cooperation with the tax community and international partners.
Transformation
As its final goal for the next five years, the report stresses the importance of adapting the federal agency to facing new threats and challenges. These include developments in
technology, a growing taxpayer base, and accounting for cyber threats.
Within the transformation goal, the report breaks the steps down into four key focuses: redesigning systems to maximize existing efficiencies, modernizing infrastructure, increasing digitalization, and improving data-driven decision making.
This is all centered upon the IRS’ ability to keep its collection of personal and financial information secure against complex cyberattacks. The report projects that technological and security investments will help to ensure that the IRS has the capability to handle an increase on the roughly 1.4 billion cyberattacks that it mitigates every year.
What to Expect from the IRS in the Next Five Years
Across the various goals that the report lays out, the common thread among them all is an increase in directed and strategic funding. When the federal government makes such a substantial financial commitment, it does not do so without expecting something in return. The government is relying on the increased capabilities of the IRS to close the tax gap through improved services and effective enforcement practices. This is the only way that the government will get back more money than what they will spend on obtaining these goals.
Therefore, it would be logical to assume that the IRS will do everything in its power to find tax debt to collect and act on it. Taxpayers should expect a significant uptick in IRS activity over the next five years that will affect many who have never dealt with such issues before.
Contact the Tax Law Offices of David W. Klasing for Tax Help Today
If you are concerned about rising IRS aggression and how it may affect your tax status, schedule a reduced-rate case evaluation with our Dual Licensed Tax Attorneys and CPAs by calling the Tax Law Offices of David W. Klasing today at (800) 681-1295 or schedule online here to book a reduced rate initial consultation.
You Can Prevent an IRS Criminal Prosecution Through Voluntary Disclosure
If you are concerned about the possibility of an IRS audit or criminal tax investigation into you or your business and past filings, it is important to assess all possible options to avoid such a situation.
The federal government’s voluntary disclosure programs provide an avenue for taxpayers who are aware of noncompliance in their filing history to come forward with additional information without being coerced into doing so through audit or criminal tax investigation. By using the voluntary disclosure option, many taxpayers avoid can avoid or reduce the penalties and fines that they might otherwise face if the government had to seek out the violations themselves.
However, voluntary disclosure may not be right in every situation. Firstly, if a criminal investigation is already underway, your decision to voluntary disclose will likely have no effect on the consequences and may even end up doing more harm than good. It is always important to discuss your situation with a seasoned Dual Licensed Criminal Tax Defense Lawyer and CPA, even if you made a genuine and honest mistake.
The Tax Law Offices of David W. Klasing Are Here for You
If you are afraid that you may have fallen out of tax compliance and are concerned about what constitutes tax fraud or tax evasion, our dual licensed Tax Attorneys and CPAs can provide you with an overview of your case and prepare your defense. Call the Tax Law Offices of David W. Klasing at (800) 681-1295 or click here to schedule a reduced rate initial consultation online.
Concerned About Criminal Tax Charges? Call the Tax Law Offices of David W. Klasing
If you are dealing with serious tax matters, you deserve tax assistance that you can rely on. Schedule your first reduced-rate case evaluation with our Criminal Tax Defense Lawyers by calling (800) 681-1295 today or schedule online here.
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.
As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime ”evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegations
Questions and Answers on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
- Substitute return modified by subsequent delinquent return?
- Do I file every delinquent return for each missing year?
- How does the IRS identify non-filers?
- How important is it to the government that I didn’t file?
- Delinquent tax return criminal prosecution likelihood
- Will I get a refund on a delinquent tax year?
- What happens after enforcement action has begun?
- Should I use an attorney, EA or a CPA to represent me when I re-enter the tax system?
- Why do people drop out of the tax system?
- What happens after the IRS identifies me as a non-filer?
- IRS has not previously filed substitute returns
- Tax attorney representation when re-entering tax system
- How will the government force me to file returns?
- What penalties can IRS impose on delinquent tax filings?
- What should I do to re-enter the tax system?
- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
