So are you looking for a job? Did you hear who’s hiring? The I.R.S., they wanna hire 87,000 agents. Let’s put this in perspective. Currently, the I.R.S. employs 79,000 agents. And, of course, no one’s retiring right now, right? So we are going to more than double the size of the I.R.S. agent pool. I have some questions.
First, where are we finding these people? The last I heard, there are not many new people looking for jobs. We’re just replacing the same jobs we’ve had in the past and barely making it there. So I’m not sure where these people will come from, but let’s theoretically say we find these people. Also, by the way, the salary they’re offering is not too great compared to what the headaches are that you have to deal with in working with the government bureaucracy.
So again, let’s say they find these people, they hire 87,000 agents, and now they’re going to increase their efforts to audit your tax returns. Okay, let’s dive in. We now have 87,000 brand new wet, behind the ears I.R.S. agents looking at your tax returns. Now, how many of those people do you think have a clue and any experience at all in working with tax returns other than the 1040-EZ? My bet is little or none. These are going to be people who have no idea how the tax code works. No idea how the I.R.S. works, except for what little training they probably receive at the beginning of their job.
Now, if those people decide that they are going to now audit your return, what will you need to do to come back to this? You have a couple of choices. First off, if they send a notice, you can just write a check and be done and don’t laugh. Many people do that, or you can dispute it. Now we know that dealing with the I.R.S. and disputes is not a fun job. It’ll be a part-time sideline job, or maybe even a full-time job for most people to deal with the I.R.S. and try to go through this audit. Many people will still give up and write the check because it’s hard, or you can do what you should do from the start. And that is to work with a CPA. who knows how the I.R.S. works. I personally have dealt with the I.R.S. for the past 30 years, and it’s not for the weak at heart.
It is a tiring job and very frustrating to deal with. And yes. Do you wanna give up some days? Yes, but we as U.S Citizens have to make sure that we don’t just bow to the government and pay money just to get rid of people because it’s a hassle. That’s not what the I.R.S.’s job is supposed to be. It appears what it’s turning into lately, but you owe it to yourself to make sure that you do the right things for your tax return. When you do the right thing on your tax return, you need to be able to substantiate it and answer the questions. And that will be a difficult task. Again, I’d suggest that working with a CPA, not to toot my own horn, but that would be the easiest route for you.
So let’s say now that you are working with a CPA, what could you have done to even avoid having to deal with the I.R.S., or what could lower your chances of having to deal with these 87,000 new agents?
Well, again, the first strategy is to employ some strategies of your own. We utilize a checklist of 87 tax strategies, not to be confused with 87,000 agents on each and every client that we work with. We wanna make sure that our clients are paying as little tax as possible, legally, and have all of these substantiations to prove that they should be able to take that deduction or make that tax strategy move.
So do you wanna employ 87 tax strategies to combat the I.R.S. or deal with 87,000 agents? I think that choice is pretty clear. Next up, another strategy that you can employ is don’t file your taxes on April 15th. Extensions are free. Now that doesn’t mean that you can wait to pay your bill. You should know how much you owe, and that must be paid by April 15th, but you don’t have to file if you extend your return until October 15th. In the past, most people have said, Hey, I want to get that out of the way. What can I do to make sure that we just put this thing to bed?
And that was a smart idea in the past for many, but it’s becoming less and less of a viable option for you. Tax laws aren’t even finished by April 15th. There are no clarifications on a lot of things. So you need to wait and make sure you don’t have to change your return or file a return that needs to be changed because that will increase your chances of an audit. So we recommend now filing on October 15th or near round to make sure that you lower the chances of being in that audit pool. And last, why are these people working for the I.R.S.?
Well, it probably looks like it’s a good job for them because they’re gonna make some money and most likely just have the good benefits. However, it’s going to be a rotating door. I’ve been involved in audits where we’ve switched out agents four and five times before we were able to resolve an audit over the course of six months to a year.
This is not going to be something that’s good for the American public. No matter how much you hear that the I.R.S. is going to raise money. How much do you think those salaries and benefits for 87,000 agents cost? I’ve got news for you. It’s way more than the IRS is going to collect undoing audits on the general American population. So if you have your choice, make the moves to not get involved in the 87,000 agents in the IRS and do tax strategies to protect yourself and have a good CPA on your side to make sure that if you do have to deal with them, that is not as difficult of a process. And it’s not a losing battle to start with.
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Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below, subscribe to our YouTube channel, and hit the bell to be notified when we post. You can email me at donna@calculatedmoves.com.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.