Will Cooperation Be Helpful?

        You may be surprised to find out that the IRS, and state income tax agencies, do not communicate very well with each other. This has been true for many years. However, a recent review has shown that this has led to almost $300 million in taxes going unpaid. When there is confusion, certain individuals can slip through the cracks.

          The IRS response to this problem is the State Audit Program. This program creates a way for state agencies and the IRS to share information and make sure that tax laws are followed. In theory, this would be a great way to stop tax cheats and make sure everyone paid their fair share. In reality, this program is voluntary, and it takes a lot of work for government organizations to work together and share. While this program is being streamlined, the state and Federal governments are getting closer to being able to work together and enforce tax law.

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