Rod's Blog

IRS Hypocrisy: Does the IRS Live Up to the Standards it Demands from Taxpayers?

Written by Cailey Taylor | Aug 26, 2013 6:00:00 PM

If you’ve ever dealt with an IRS audit or dispute, you know exactly how demanding the agency can be of taxpayers. In fact, if you have even filed a tax return you are familiar with the detailed information you are required to provide to the agency.

And it stands to reason that an agency which demands such precision from taxpayers would be ultra-organized themselves… right?

If you’ve ever dealt with an IRS audit or dispute, you know exactly how demanding the agency can be of taxpayers. In fact, if you have even filed a tax return you are familiar with the detailed information you are required to provide to the agency.

And it stands to reason that an agency which demands such precision from taxpayers would be ultra-organized themselves… right?

Apparently not. According to an article published on WatchDog.org, the IRS has proven incapable of tracking important information related to software licenses. As if the hypocrisy alone wasn’t enough, this lack of organization raises serious questions about the agency’s ability to handle an even larger role as President Obama’s health care reform act is implemented in the years to come. From the article:

The Internal Revenue Service soon will have a larger role to play in managing the health records of Americans. But they’re having a hard time managing their own records, it seems.

A new audit report from the Treasury Inspector General for Tax Administration, which oversees the IRS, found the agency was not keeping track of its software licenses and did not employ specialized tools to track and manage the multitude of licenses being used daily at the IRS.

“Efficient and cost-effective management of the IRS’s software assets is crucial to ensuring that information technology services continue to support the IRS’s business operations and help it to provide services to taxpayers efficiently,” auditors wrote in their report.

The division of the IRS charged with managing the licenses could not provide auditors with the proper licenses for 24 of the 27 software products reviewed.

Got that? The agency that expects you to document every penny you make and just about every penny that you spend couldn’t provide key documentation for 24 of 27 software programs. Can you imagine if you couldn’t substantiate 24 of the 27 deductions you claimed on your return? You’d have a small army of auditors at your door in the blink of an eye!

Unfortunately, fair or not, the IRS has the power to make the lives of American taxpayers miserable. If you’re currently facing an IRS dispute, we can help. Call 844-841-9857 to learn more!