IRS Is Ignoring Potential Corporate Tax Cheats, Watchdog Says

The Internal Revenue Service isn’t doing enough to audit corporate mergers and acquisitions and is wasting tens of thousands of days on cases that aren’t likely to generate more tax dollars, the agency’s watchdog said.

IRS employees spent a collective 27,874 work days from fiscal years 2015 to 2018 examining corporate merger and acquisition issues that were ultimately not changed after the audit was completed, the Treasury inspector general for tax administration said in a report released Tuesday.