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DC CURRENTS

income audited by the IRS did have a year 2021 totaled 17,079 (IRS, Data reductions proportionately in audit rates.
slight increase over fiscal year 2020 — Book, 2021, Table 32). For comparison, Indications are that the significant attri-
from 11,331 to 13,725. However, the the number of FTE employees in these tion of revenue agents and tax examiners
2021 number was still below that of categories for fiscal year 2011 was 38% will continue. Even with increases in
2019 (13,970) (id.). higher at 23,556 (IRS, Data Book, 2012, funding, it appears that the IRS is years
“Despite this modest improvement Table 30). away from having a robust core of tax
[in 2021], [the] IRS was still only man- Ebeling also attributes the reduction examiners and from having audit num-
aging to conduct about a third of the in audit rates to IRS staff shortages bers comparable to 10 years ago. ■
millionaire audits it had completed dur- resulting from decreased funding, and
ing fiscal year 2015” (id.). elaborates: “Since fiscal year 2011, the
Ashlea Ebeling, writing in Forbes this number of tax examiners who work basic
year, reached the conclusion that “[o]n audits, usually by mail, decreased by
average, individual tax returns were au- 18%, and the number of revenue agents Contributor
dited over three times more often for tax who work on complex in-the-field au-
Robert M. Caplan, CPA, is a partner
year 2010 (0.9%) than for tax year 2019 dits decreased by more than 40%.”
with Caplan & Wong CPAs LLP in
(0.25%)” (Ebeling, “IRS Tax Return In conclusion, the IRS, primarily due
San Mateo, Calif., and a member of
Audit Rates Plummet,” Forbes Personal to funding cuts, employs significantly
the AICPA IRS Advocacy & Relations
Finance (May 18, 2022)). fewer revenue agents and tax examiners
Committee. For more information
The decline in audit rates can par- than a decade ago. This has led to an
about this column, contact
tially be explained by the reduction in overall decline in audit rates for indi-
thetaxadviser@aicpa.org.
full-time-equivalent (FTE) IRS revenue viduals and corporations. High-income
agents and tax examiners, which in fiscal taxpayers have received the greatest

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