IRS Auditors: Working Too Quickly?

IRS auditors are not happy with an agency policy that requires quickly closing out audits of large corporations, the New York Times reports today. The paper interviewed 50 auditors, and only one agreed with the new policy. The others said it lets companies get away with paying much less than they actually owe. Further, the auditors argue their hands are tied in doing anything about the practice by the agency's performance management system. Supervisors, they say, receive bonuses and promotions based on closing cases in the time allotted, not on the quality of audits or amounts collected.

One auditor, when asked why she didn't challenge the decision to close certain audits, said, "“Why would I do that? So my manager will give me a bad performance review?”

The IRS says the program is working, and that the proof is in the amount of additional tax recommended for each hour auditors spend on large and medium-size companies. That figure has more than doubled since 2002, from $2,394 to $5,195.