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Should taxpayers get paid for being audited?

November 18, 2009

Mary O'Keeffe thinks maybe so; Peter Pappas thinks not.

It probably is unwise to compensate for normal audits. They're a cost of doing business. If the IRS audits you twice in a short period with no changes, I would argue otherwise. The strongest case for paying audit victims is when the IRS does a "research program" audit; there the purpose isn't so much to raise revenue as to develop statistics. At least they could give a free dinner at Applebees or something.