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Today's New York Times tells a senior IRS auditor's story of a "secret deal" between higher-ups and a former high-level IRS executive to approve a a $51 million tax benefit without a proper audit. The auditor says the former IRS executive, now with a national accounting firm, took advantage of the his connections to shortcut the audit process for a taxpayer. The auditor now may lose her job because her efforts to go outside channels to prevent the alleged shortcutting may have run afoul of taxpayer confidentiality rules.
Tax Analysts has more, but unfortunately the article is subscription-only.
More from us on this later.
UPDATE: Warren Rojas of Tax Analysts emails to tell us that they have a link to a pdf version of their coverage. Here it is. It's much more detailed than the NYT article and provides rare insight to the IRS audit process.
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