Richard Green – IRS Whistleblower Talks Life Inside Today’s Chaotic and Dysfunctional I.R.S.

Why are IRS workers so snarky? Don’t need to please the customer.

No judicial oversight of the IRS and their actions.

“Stick it to them, they’ll never hire a lawyer.”

If we went to a national sales tax, they would lose control.

Almost always civil prosecution, not criminal, so taxpayer has no judicial protections.

What will happen with new bill to hire more IRS agents?

Why does the IRS target the poor and middle class? The ambitious agent goes after people without the resources to fight. “Productivity” of agent affects promotion opportunities.

Tax returns are scored by algorithm. Auditor has tremendous discretion.

If fraud is suspected, IRS can open up all returns back to 1913.

Can private companies negotiate with the IRS to reduce tax liabilities? IRS can waive penalties, deficiencies, “offer and compromise”. Cost benefit analysis of who to pursue. Go after the fast dollar to satisfy Congress, don’t draw out audits. Intense pressure to close cases.

Hire a lawyer who is experienced in negotiating with the IRS.

Understand how your tax return compares to others. Tax preparation programs will red flag issues you’re likely to encounter. Generally accurate in indicating likelihood of audit.

How can a taxpayer find someone knowledgeable in “offer and compromise”?