The IRS recently reported a 16% drop in audits, a 40% drop in levies, and a 9% drop in liens for 2016 compared to 2015.This information was released as part of the IRS’s 2016 Data Book, which reports on the agency’s activities for the twelve months ending on Sept. 30, 2016.
The IRS audited over 1 million 1040 returns in 2016, almost 16% fewer than 2015 and the lowest rate in more than a decade. Although, the IRS’s enforcement budget was reduced by $107 million, the IRS collected a record $1.8 trillion of individual income tax and $3.3 trillion overall and refunded over $426 billion.
Especially important to practitioners, the IRS claims to have improved its live telephone assistance. It claimed it provided live telephone assistance over 25.5 million times, an increase of 40% over last year. To that end, nine tax practitioner organizations, including the AICPA, just presented federal lawmakers recommendations on how to improve the IRS. Services would include centralizing an “executive-level” practitioner unit within the IRS.
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