IRS Auditors Need to Consider Collectability More Often

TIGTA just released a new report detailing the IRS' lack of following established procedures for determining collectability during audit.


56 percent of cases sampled did not follow collectability procedures. TIGTA estimated that 1,731 office audits and1,445 field audits were closed where the auditor did not follow established collectability procedures. These cases were later closed out as Currently Not Collectable by the IRS Collection division.


This is really important. Representatives need to bring this issue up more for their clients. Under the IRM, collectability needs to be considered throughout the audit process. If circumstances change, clients can get no change audit reports due to their inability to pay the audit adjustments.


IRM management is going to take corrective actions proposed by TIGTA to try to eliminate this issue in the future.


Relevant Cites: TIGTA Report