Does that mean dishonest taxpayers are less likely to get caught?
The audits themselves may have declined, but there are a lot of other things being done with matching information, that, while not technically categorized as audits in our statistics, certainly provide information to us. (They) generate a notice and questions to taxpayers — why didn’t you show this dividend? — that very much increases compliance. That’s across a big chunk of the taxpaying public. Where we have issues (is with) somebody who has $1 million of income, they’ve got 10 different investment partnerships. Unraveling all that is a complex undertaking. That’s why we’re putting more money into that area. You don’t have the same traditional tools as with the average taxpayer who is drawing a salary and working for the post office. Q: It appears some accounting firms that created tax shelters for their clients viewed IRS penalties as a cost of doing business. Do penalties need to be increased? A: I do think it’s shocking that it does appear in some instances people viewed penalties
