Monday May 16, 2022 – The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION recently conducted an audit and issued a report on May 4, 2022 – A Service-Wide Strategy Is Needed to Address Challenges Limiting Growth in Business Tax Return Electronic Filing.
“This audit was initiated because the IRS’s continued inability to process backlogs of paper-filed tax returns contributed to management’s decision to destroy an estimated 30 million paper-filed information return documents in March 2021. The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income.”
The IRS destroyed 30 Million information return documents! These information returns are required documents – taxpayers shoulder the cost and burden of producing these documents in a timely fashion. And the IRS destroyed 30 million.
Don’t worry – says the IRS – “There were no negative taxpayer consequences as a result of this action,” “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”
So, it is important that information returns are filed – and information returns should be expanded – but, if they are destroyed, there are no consequences.
Attorney Steven A. Leahy reviews this latest TIGFTA report today on Today’s Tax Talk.