Talking Tax State Auditors Also Bear Heavy Loads This Tax Season
The Biden administration made headlines last year with its plan to provide $80 billion to the IRS to bolster audit and enforcement activities, and tackle the so called “tax gap”—the difference between the amount taxpayers owe and how much they actually pay. It's estimated at $600 billion annually.
But what about the states?
State revenue departments will face some significant challenges, such as years of chronic underfunding by state legislatures, the loss of experienced auditors, practical limitations resulting from the Covid-19 pandemic, and the growing complexity of state tax codes.
To learn about how states are dealing with these state audit and enforcement challenges, we hear from Greg Matson, executive director of the Multistate Tax Commission, and Nancy Prosser, the commission's general counsel. They talk with Bloomberg Tax's Michael J. Bologna about their priorities for this year and why working remotely just isn't as satisfying for tax auditors.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.