Who Does the IRS Audit?

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There’s a piece today in the Wall Street Journal’s a bit of a see I told you so moment in regarding to who the IRS is auditing. That’s right. Who does the IRS audit? So there’s the the Treasury Inspector for General Tax Administration, TIGTA, TIGTA it’s called. And it took a look at the various different mandates thrown down by Biden and the tens of

billions of dollars, tens of billions of dollars in funding that the IRS has achieved. And we were told, right, we’re gonna go after, go after the ultra wealthy, going after the ultra wealthy. Gotta go after those rich people out there. Focus on high income taxpayers.

Again, I laughed at this. Again, I happen to be in the financial services industry. We work hand in hand with one of the best accounting firms in the country. It’s part of our personal CFO program. My best friend runs the firm. Okay, and he is phenomenal. And let me tell you something. We follow the law.

We follow the law and do we have a lot of really, really wealthy clients? Yeah, yeah. And guess what? Guess what? They report all of their income and they follow the rule of law and they pay their taxes. The ultra wealthy, they show what they make. Anyway, anyway, the IRS and orders take a look at this. They can audit, but again, what are you going to do?

They’re following the rule of law. The most recent data from TICTA shows that the IRS is focused on the same thing. 63 % of new audits targeted taxpayers with income of less than $200 ,000. $200 ,000. OK, I want to talk a little bit about this I mentioned.

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this before? Listen, I live in an area of the country where, you know, you hire somebody to do something for your house or contract or fix something, whatever it may be. They are the first question they ask is you pay cash, pay cash. My answer is no. Now I don’t pay cash. I, I account for everything.

Can you Venmo? No, no, no, no, no, no, I can’t Venmo. I can’t. I’m writing a check and I’m going to be honest with you. There’s a side of me where quite frankly, it pisses me the hell off. It does because I pay my taxes and I think I know lots of people, lots of people, again, living in multi -million dollar homes and reporting to the IRS that they make 50 grand a year.

One of the most popular restaurants, one of the most popular restaurants where I live up the street from us, cash only.

cash only Italian restaurant. Got to pay cash. I don’t go. I’m not as I said, you know, I’m not going to do that. I honestly. Oh, you’re just a hater. No, I’m not. I pay my taxes. I pay my taxes and you know what? If you know these guys, you know, the restaurant that doesn’t pay every.

eight, nine years, I’m sure the IRS comes in there, which it has and audits it and they make sure that they have the cash. I know people. I know people that bury money, that have businesses that bury money in the freaking backyard because they can’t put it in the bank. It’ll be too obvious. They’ve got the house. I don’t know how they get away with that. But. The other people not reporting income, that’s the issue is unreported income. You got to go after.

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Super Bowl, did they report it? You know what they’re making.

You know what to me, I’m not going to my clients. Oh, no, no, you pay for my, you pay me cash. What? So again, this is where all of the, again, the shenanigans take place. And this has been the reality. But there was another interesting thing here. And again, the CI told you so moment when it came to the IRS and they talked about all of these IRS agents that they were going to hire.

And I said, where are they planning on finding them?

Where are they planning on finding them? Because again, you graduate with an accounting degree, you’re getting a job.

You are getting a job. Accounting firms are hiring. Every here, there, and everywhere in the private sector. So you wouldn’t rather go get a job at a private sector firm, you’d rather get a job for the government. Anyway, which is interesting, they wanted to hire, take a look at this success rate. The IRS wanted to hire 3 ,700 new agents this year.

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Take a guess how many they hired. It’s a guess. Guess, how many you think the IRS hired? 34.

34 that that’s that’s it anyway yeah you might want to claw back the tens of billions of dollars you threw at the IRS just saying watchdog on wallstreet .com