The IRS is currently working on a pilot project that may be able to improve taxpayer compliance by mailing notices when there are discrepancies on returns. The IRS plans for this project to be an educational experience for taxpayers and to encourage people to correct their returns if necessary.
IRS spokesman, Eric Smith says the program is going to generate letters based on discrepancies between taxpayer's return and third party reports. Many accounting professionals believe this is a good idea for the IRS because it is an effort to reduce the tax gap. I believe that this is a great idea. In the past, taxpayers would get nervous any time they would receive a letter from the IRS. With this program the IRS can create a better image of themselves. An image that is needed to drastically be improved, especially in a time of financial hardship. Also, by trying to educate the taxpayers instead of just telling them what they did wrong it gives them an opportunity to learn and avoid future mistakes. However, as an accounting major i do worry that this will take away from some accounting jobs in the future.
With educating people about taxes it allows people to be able to do their taxes on their own without any help from an accountant. Despite this, I still believe it is a step forward for the IRS.
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