Revenooers Can’t Catch a Break

Last week’s Congressional grilling of IRS Commish Koskinen was bad enough.  But only a day or two earlier, the Treasury Inspector General for Tax Administration (TIGTA) also lowered the boom.  And you have to chuckle at TIGTA’s press release covering its most recent findings, which noted that “TIGTA audit finds room for improvement in disposal (of ‘unneeded’ computers) procedures.”

You can’t make this stuff up.

Without even planting his tongue firmly in his cheek, TIGTA observed wryly that “The Internal Revenue Service needs to improve its processes for disposing of unneeded computers, printers, and servers.”

Really.

And get this TIGTA jargon:  “The IRS needs to:  improve documentation to ensure compliance with media sanitization guidelines; report any IT equipment that cannot be located to the Computer Security Incident Response Center as required; and improve documentation of disposal actions.  The IRS disposed of 63,031 desktop computers and 44,734 laptops between 2009 and 2012 through a combination of recycling and donating to schools.  However, it does not effectively track which equipment is recycled or donated, making it difficult to measure compliance with GSA requirements.”

So which elementary school in the D.C. area now may have that “recycled” Lois Lerner hard drive?

But it’s all because the IRS just doesn’t have enough dough to enable it to carry out its programs, if you believe the Revenooers.  But a House Appropriations Committee isn’t buying that line, and last week was about to slash about $1.5 billion from Obama’s proposed budget for the agency.

According to Committee Chairman Hal Rogers, “The bill focuses cuts on lower-priority or poor-performing agencies, such as the scandal-plagued and inefficient Internal Revenue Service.”

So there.

And finally, this week, if the Revenooers do clip you for an audit assessment, don’t forget to notify the California Franchise Tax Board, as you are required to do, if they should similarly be entitled to their share as well.

In the case of a federally-determined underpayment of taxes, you must notify FTB within six months of the final federal decision.  If you do, FTB then has two years from the notification date within which to assess you.  Or, if they don’t hear from you within six months, and only later hear from IRS directly, they have four years from the notification date to issue an assessment.

CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters.  You should consult your CPA regarding the implications to your own particular situation.

Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno.  He can be reached at 831-7288,  welcomes comments at jquinn@ashleyquinncpas.com, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.

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