But Wragg adds that it's likely the IRS is motivated more by efficiency than by suspicion of underreported income. Noting that the agency has limited resources, he says the IRS won't have to "dig as many dry holes" if it can use Schedule UTP to help evaluate the best candidates to audit.
Dolan suggests an additional motivation for launching Schedule UTP. The new form, he says, gives the government "visibility into a segment of taxpayers that they really have not examined in the past," referring to companies that don't regularly engage with the IRS. "At the end of the day, [the new schedule] may be a way for the government to identify entities and transactions that would never have been on its radar," says Dolan.
Reader Comments» Post a comment