""There's seemingly this mentality building which is, 'The IRS isn't going to catch me,'" said Carolyn Schenck, a former IRS national fraud counsel. Audits of people with at least $10 million in income dropped 39% this year."
"The workforce reductions would cut $46 billion in federal spending over the next decade but reduce revenue collections by $643 billion, according to The Budget Lab at Yale."
""Roll the dice. Put an extra zero here," said David Carrone, a retired revenue agent. Before you take that advice, remember: the government can audit returns up to three years after filing."
The IRS has reduced its workforce by 25,000 employees, resulting in a 39% drop in audits for high-income earners. This reduction is projected to save the government $46 billion over the next decade but will lead to a loss of $643 billion in revenue. Enforcement spending is at a 20-year low, fostering a mentality among taxpayers that they are less likely to be caught for tax evasion. Business owners may exploit this situation by underreporting income or inflating expenses, although audits can occur up to three years after filing.
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