Self-filing software leads to increase in audit representations

As the popularity of online self-prepared income tax filing grows – now approaching 50% of all tax filers – so does the incidence of tax evasion. Some of it is intentional effort to avoid paying taxes, other times just misunderstanding of complex tax laws.

Tax practitioners like me are gradually seeing a shift of our work from income tax filing to audit representation. In my case that often involves financial planning for the financial stress related to tax collection actions.