IRS audits have increased in recent months, especially for higher-income taxpayers, corporations, and partnerships.

Spending Proposals IRS budget increase will result in more audits and more information reporting requirements for banks.

The IRS along with the DOJ has been aggressively pursuing offshore account holders to disclose their overseas bank accounts before it's too late.  There are significant penalties for holding accounts in certain foreign banks.  However, in an effort to encourage account holders to disclose their accounts, the IRS started the Offshore Voluntary Disclosure Program (OVDP)  and the streamlined procedures enable taxpayer to meet their tax obligations while limiting the potential penalties for continued non-compliance.

Alabama has become the 32nd state with an independent tax appeals process.