Watch Out for the New, Modern IRS

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Watch Out For Tactics From the New IRS

Watch Out For Tactics From the New IRS

The new, modern IRS is finally responding to the pressures of the marketplace and their budget. They've implemented a number of changes aimed at running the Internal Revenue Service more like a for-profit business.

Scary? You bet. Lack of resources and audit inefficiency has protected many business owners in the past from receiving the dreaded audit notice.

The IRS is implementing new ways to perform and manage audits, including mail audits and sending out a lot more information notice requests.

They are also cracking down on what they call their "distribution network." Which basically means paid tax preparers. By requiring registration and continuing education for these tax service providers, they've cut something like 40% of the ranks of previously-known preparers.

The IRS claims that this will help knock off the bottom-of-the-barrel tax preparers, many of whom they claim are under-trained or providing questionable tax practice advice.

Local Business Takeaway: Make sure that your tax preparer is qualified and has important industry certifications such as being a CPA, an IRS Enrolled Agent, or other experience. Or you might be seeing one of those new modernized IRS notices sooner than you'd like.

You can read more about the new, modern IRS at American Express on the OPEN Forum.

Have you experienced the new modern "for profit style" IRS? What are your best tips for avoiding an audit?