Tumblr Icon RSS Icon

Every Hour Spent Auditing Corporate Tax Returns Yields More Than $9,000 In Revenue

By Pat Garofalo  

"Every Hour Spent Auditing Corporate Tax Returns Yields More Than $9,000 In Revenue"


google plus icon

Near the top of the list of counterproductive budget cuts is cutting funds for the Internal Revenue Service, as every dollar of tax enforcement yields $4-$5 in revenue in a country where uncollected taxes have hit $385 billion per year. Along those lines, Reuters’ David Cay Johnston noted today that IRS auditors “assigned to the 14,000 or so largest corporations found $9,354 of additional tax owed for every hour spent testing tax returns in the 2009 fiscal year.” “The highest-paid IRS auditors make $71 an hour. Based on a 2,080-hour work year, that works out to around $19 million of lost revenue annually for every senior corporate auditor position cut from the payroll,” Johnston wrote.

‹ Romney Invests In Several Bain Funds That Use Offshore Tax Havens To Boost Profits

Econ 101: January 19, 2012 ›

By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.