Here are two suggestions to help taxpayers avoid receiving one of the 10 million audit notices due to be dropped in the mail. The first suggestion is guaranteed and the second is less than pure speculation.
The guaranteed method is making certain your tax return filing contains at least 24,000 pages! General Electric reported billions of profit. For 2010 its federal income tax bill was zero. These numbers contain two green light items that normally would have the IRS sending out a taxpayer audit notice using overnight guaranteed delivery. One number is a red light absolutely guaranteed never to be audited. That number is 24,000 pages are contained in General Electric’s tax filing. An interesting question would be what freight line they used to send it to the IRS. General Electric employees over 900 people to oversee tax matters, apparently these 900 specialist give General Electric stockholders the highest return of any department at the company. General Electric’s tax return is similar to the Obama care health bill: it will never be read.
The second method to prevent an audit notice involves two steps. First, become elected to the House of Representatives, and secondly, become chairman of the House Ways and Means Committee. The Ways and Means committee is charged with passing laws containing ways to tax the citizens and the means to collect as much revenue through taxes as possible. The past chairman of the Ways and Means committee for years lightened his tax burden by not disclosing taxable income. His defense was failing to remember ownership of a vacation real estate property apparently worth thousands. The IRS did not discover this using their audit tool. When the mistake was publicly revealed, the chairman pulled out his handy 1040 X form, amended his returns, and paid the tax due. Apparently because he voluntarily gave light to his indiscretion and paid the dark side, no penalties were assessed. The lesson to be learned here is if you have cheated on your taxes, amend and pay now not later. With a good tax team leader a family may “Rangel” out of penalties and interest.
After reviewing your budget, if you are not able to place 900 new employees on your payroll and election to the House of Representatives in Washington has 1000 to one odds, it is suggested to become actively engaged to plan for the day your audit notice arrives.
