Professor Robert Nassau, Director of the Sherman F. Levey ’57, L’59 Low Income Taxpayer Clinic, spoke with MarketWatch on the recent reduction of staffing at the IRS and what that might mean for audits.
Thus far, Nassau hasn’t experienced sudden changes or pauses in the audits he defends against. “I haven’t seen any of that,” he said. “I wouldn’t mind seeing a little of that.”
When a tax return doesn’t match the information the IRS has, the agency sends an automated underreporting notice. “Those sort of automated underreporting audits, I can’t see them stopping,” Nassau said. “The computers are just going to spit those out” unless programmed to stop.