Get ready for even more incompetence at the IRS in 2023

The Internal Revenue Service is hiring 87,000 new agents, but taxpayers will not feel the pain for another two to three years. That’s how long it will take the agency to hire and train agents. Few have discussed the extent of this pain. Still, it’s something to think about when you consider the majority of coming audits will be conducted by new agents, many of whom will have been hastily hired and operating with minimal supervision.

Playing the audit lottery will not be smart in future tax years. Taxpayers should protect themselves now, especially when profiting from statutory gray areas — such as cryptocurrency staking, investing through decentralized autonomous organizations (DAOs) and other decentralized finance (DeFi) products.

Sources of federal tax revenue in billions, 2000-2021. Source: Cato InstituteAudit Rates by Taxable Income Bracket in 2019. Source: Government Accountability Office

Crystal Stranger is a federally-licensed tax EA and the international tax director at GBS Tax. She worked previously as a software developer in San Francisco.

Continue Reading on Coin Telegraph

Source link