Is the IRS such a mess that the nation’s system of voluntary tax compliance is at risk? Will frustrated taxpayers rebel because they can’t get help with a revenue code they can’t understand? Will aggressive taxpayers who recognize that audit rates have plummeted to the lowest levels in years further push the tax-avoidance envelope? And will a massive increase in new-style tax fraud, perpetrated by hackers and identity thieves rather than traditional tax cheats, crash the filing system?
We may be about to find out in what’s becoming an increasingly toxic environment for tax administration.