Ep. 81 | A Look Into The 2023 IRS Data Book
Download MP3In this episode, hosts John and Chris dive into the often overlooked, yet insightful, Internal Revenue Service (IRS) Databook. The conversation opens with a spotlight on the importance of understanding IRS operations and statistics that can empower taxpayers to minimize their lifetime taxes legally and ethically. Discover key trends in electronic return filings and insights into IRS auditing practices that every taxpayer should be aware of.
The episode unpacks the IRS's processing of 271 million tax returns and the significant shift towards electronic filing, with over three-quarters filed electronically. Chris and John highlight the three states with the highest federal tax payments, namely California, New York, and Texas, offering a glimpse into the geographical dispersion of tax contributions. They also dissect the IRS customer service complexities, emphasizing the challenges faced and the agency's efforts to improve response times.
Key Takeaways:
Key Takeaways:
- The IRS Databook provides a transparent look into IRS operations, shedding light on filing trends and enforcement actions.
- Over three-quarters of tax returns are now filed electronically, marking a significant shift in taxpayer behavior.
- California, New York, and Texas are the top contributors to federal tax revenue, indicating regional economic influences.
- The audit risk for individual taxpayers remains relatively low but increases significantly with higher income levels, especially for incomes over $1 million.
- Taxpayer Advocate Service is a resourceful component of the IRS aimed at helping taxpayers resolve issues efficiently.
Notable Quotes:
- "We're gonna look at something, as I mentioned here in the intro, you probably didn't even know exists on this planet we call Earth." - John Tripolsky
- "Tax agencies are your involuntary business partner." - Chris Picciurro
- "If you owe a refund or have any type of correspondence or case going with IRS and you are found to be correct, they will pay you interest on that balance due." - Chris Picciurro
- "The audit risk for individual taxpayers is technically 0.44%, or one in 200." - Chris Picciurro
- "If you're getting audited, you're probably gonna get additional tax assessed." - Chris Picciurro
Referenced Resource (IRS Data Book)
https://www.irs.gov/pub/irs-pdf/p55b.pdf
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