IRS Fails Government Audit

A billion here, a billion there…

According to the report (PDF), the IRS made a variety of accounting errors last year that "could adversely affect the reliability of its financial statements" and result in "duplicate or erroneous refunds." Among the mistakes were a "failure to record the receipt of a taxpayer's $3 million payment" and an $8 billion discrepancy between two accounting systems tracking how much money taxpayers owe. The audit also found a $5.1 billion "unexplained variance" between the total amount the agency took in last year and the amount its detailed tax files said it took in.

Via Yahoo News.

Comments

[Jeffersonian]

I trust the IRS commissioner signed off on these number and thus will soon be prosecuted, right?

[Subsidize Me!]

Sinecure means not having to say you're sorry.

[ClubMedSux]

You can bet your sweet ass that I won't be getting a duplicate refund any time soon...

[Mo]

*fingers crossed*

Come on duplicate refund. Papa needs a new pair of shoes.

[shrike]

Arthur Andersen could paper this little hole over for a few years.

[P Brooks]

I'll bet Max Baucus is all over this.

I *know* the president is awaiting the imminent arrival of Timmay's letter of resignation.

[sixstring]

We used TurboTax!

[Timmeh Geith-bag]

Me too!

[Fluffy]

Only Democrats got double refunds.

[wylie]

RAH RAH RAH

MY TEAM IS BETTER THAN YOURS

RAH RAH RAH

(that what you were looking for in response?)

[Rich]

The audit also found a $5.1 billion "unexplained variance" between the total amount the agency took in last year and the amount its detailed tax files said it took in.

Not to mention the *explained* variance.

[Episiarch]

Of course, if a private firm made these mistakes, heads would roll, and criminal charges would be imminent.

But not for our masters in the government.

[wylie]

and criminal charges nationalization would be imminent.

Wait, wha....*head asplosoin*

[Timothy Geithner]

The IRS is too big to fail.

[The Other Kevin]

I'm sure they would be quite understanding of any unexplained variance between my actual income and what I may have reported on a 1040.

[Neu Mejican]

Doesn't that make their figures about 99.9% accurate given they take in something like &2,500,000,000,000?

[sage]

It's actually 100% due to rounding.

[wylie]

No, its 100% accurate because "STFU and pay up bitches."

[MP]

Always look on the bright side of life.

[wylie]

It will helps us every day, it will brighten all the way.

[Cyto]

In accounting they talk about material errors. It is hard to imagine, but with the huge numbers involved - $5 billion is probably immaterial.

[Kevin]

You know what happens to people who pay 99% of their taxes?

Ass-rape.

[libertymike]

No, it does not.

[libertymike]

My last post was in response to Neu's query.

[Chemman]

Still not good enough for EPA.

[?]

They only sent me a threatening letter and a blank bill in "response" to some "earlier correspondence" I never had with them.

I'm unfulfilled.

[DADIODADDY]

but still at large

[wylie]

Shhhhhhhhh!

[Warren]

I can't wait to read the report when we audit the FED.

[Ben Bernanke]

Hah, we're gonna change the name first, so you won't get shit!

[BeesinTheBrain]

an $8 billion discrepancy between two accounting systems tracking how much money taxpayers owe
Shrug, rounding error, one rounds up the other down.

[ICGamblers]

You have to make an appointment with the 'manager' of the individual you attempt to have a dialogue with who may have an 8th grade education. Of course this is after waiting 35 minutes for what becomes a 3 hour conversation for a mistake they made yet can't "see" because there are 2 systems that store the 2.5 trillion dollar data set (i.e., are taxes).

That's the IRS in a nutshell.

[Ken]

Hmm... guess those penalties will be pretty high by the time they set up a payment plan to pay off the money they owe. My guess is Big Government will sweep this right under the rug along with everything else they conveniently make go away. God forbid I owe them $21 in back taxes, though - I'll get letters, phone calls, and ultimately, jail time. Shame I can't just act like it never happened and let it go - but just you watch - they'll make this disappear.

[Bob Smith]

Since the IRS wouldn't accept 99.9% accuracy from me, perhaps the IRS should fix its accounting problems before pontificating about the imaginary "tax gap".