Tag Archives: e-filing

Protecting yourself from the New IRS’s Big Brother Supercomputer

Big Data, Big Brother, IRS, roboaudit,

IRS is using “Big Data” with its Big Brother super computer.

Yes, Big Brother is at the IRS.   In this blog, you will learn what the IRS is doing.  You will also learn how to protect yourself.

The IRS is using a power big data software program. It includes facial recognition.  The software records your internet searches.

 The big data is watching your email patterns.  It knows your contact lists.  Get this; they track your car’s license plate.  Most public parking lots (for a shopping center, etc.) video feed is sent to the U.S. Government.  The IRS gets this information and feeds it to their supercomputer. 

The IRS is bragging that their supercomputer is creating a DNA blueprint of your behavior.  Saving taxes and reducing your audit risk is now easier than ever.  

The IRS has a new robot that decides on who is audited.  This is known as Robo-audit.  There are ways to make your tax return invisible to the robot and to mislead the robot. 

The IRS Robot is farming eBay, LinkedIn, and Facebook, Yelp, and all social media. It saves your Internet searches.  In some cases, the robot collects your emails.  

 It has access to every social media posting going back to 2008.  Deleting your posts does not make them go away.  The IRS has bragged that their computer can make DNA blueprint of each of our behavior.

Amazingly, their supercomputer can read all 200 million e-Filed returns in just ten hours.  

The  IRS Robot finds it victim.   Then it sends the victim’s return to the audit manager.  The power and capacity of this supercomputer bring Big Brother to all of us.   It has more than 6 billion pages of personal data on of us.  This is an average of 3,000 pages per tax return.

 In this episode of my radio show, you will learn how to become stealth from the IRS big data robot audit computer.  You will learn how to improve your IRS profile by gaming the robot.  
 If you would like to brainstorm your tax planning, then please call me, Brian Dooley CPA, at 949-939-3414 for a free one-hour consultation.

New E-filing IRS Risks and How to Protect Yourself.

tax planning, saving taxes, how to save taxes, tax court

Tax Court explains great tax planning in this case.

Just how do you avoid an audit?  You can avoid an audit by filing a paper return. More importantly, your CPA will give you the return to review before it is filed.  I explain more in a few paragraphs but first the story of Mr. Hardnett and his poor wife.

In a recent Tax Court case, Mr. and Mrs. Hardnett was charged the 20%  penalty because their tax preparer did not review their return with them before it was filed.  The Tax Court wrote:

“The record also shows that the return preparer  did not review the return with petitioners, nor did petitioners review the return on their own. Taxpayers have a duty to review their tax returns before signing and  filing them, and the duty of filing accurate returns cannot be avoided by placing  responsibility on a tax return preparer. Metra Chem Corp. v. Commissioner, 88  T.C. 654, 662 (1987); Magill v.  commissioner, 70 T.C. 465, 479-480 (1978),  aff’d, 651 F.2d 1233 (6th Cir. 1981).”

After e-filing a return, many CPAs merely send the client a  PDF copy.   They do not review the return with you.  The tax problem is the Courts deem you to have reviewed the return.   As Mr. and Mrs. Hardnett discovered, not only are liable for the tax, you are also charged a penalty.

What to do?   Take charge by doing the following:

1. Require your CPA to send you a copy of your return before he/she eFiles it.
2. Better yet, file a paper return (which is your right).  Paper returns have a lower audit risk.
3. Avoid an IRS audit by filing a paper return.  The IRS is relying on its new supercomputer to analysis every return… but it can only read e-filed returns.

Here is more on the IRS super computer.