IRS Has Black Hole in Tax Program Costing Taxpayers $500 Mil

rsorensen2
Oct 1, 2024
2 min read

The IRS has a “black hole” in their tax software that your money falls into and never seen again. Randall Sorensen, CPA estimates that it is costing you, the taxpayer, between $170 and $500 mil/yr of your hard-earned money.

The New York Times reported the IRS plans to hire 87,000 agents at a cost of $80 billion over the next decade that will bring pain to many taxpayers. Commissioner Rettig told tax professionals at the AICPA National Tax Conference to “reach out because we need to hear you.” He went on to say, “It’s really among the highest priorities that we can have.” Randall Sorensen, CPA, took Mr. Rettig to heart. He offered to work for the IRS for free, recover $500 million on behalf of hard-working taxpayers and be paid commensurate to current IRS collection partners. Mr. Sorensen previously tested 535,000 tax returns that contained 80 fields of tax data in 45 minutes. He estimates that it will require IRS computers less than 1 hour to confirm the black hole.

Back in 2011, Mr. Sorensen offered to test 7 million tax returns at a cost of $1.8 mil. This would have resulted in saving taxpayers $1 billion. The IRS expressed interest but said they lacked the resources. Thanks to the Tea Party Congressional hearings, the American public found out that Strong Castle had received a $500 mil software contract. This was three months after informing Mr. Sorensen they did not have any money.

During the last ten years Mr. Sorensen’s clients have received electronic tax bills demanding payment of more than $2 million. Mr. Sorensen in turn filed appeals and reduced the $2 mil demand to $500. Stated another way, the IRS sent bogus tax bills totaling $1,999,500. How much money does the IRS wrongfully collect each year?

One client received a bill for $10,000 because the IRS incorrectly entered his social security retirement as $251,030 when the correct amount was $21,030. Three other clients never received their $5,000 tax refund. When Sorensen contacted the IRS, they told him that his clients needed to “request” their money. An example of power gone wrong.

To date Mr. Sorensen has not received a reply to his offer to recover $500 million. If terrorists such as the East German Mafia identify this windfall, then the cost to taxpayers could be north of a billion. What is even worse is the IRS will have compromised the safety of all Americans.

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Yes, Tax Transcript Store offers three easy-to-read tax summaries tailored to meet your needs. These include: 1. **Comparative Individual Income Tax Returns** – A comprehensive comparison of your individual income tax returns over different years. 2. **Summary of Wages/Partnerships/Sub S/Trust K-1s** – A detailed summary of your wages and income from various partnerships, Subchapter S corporations, and trust K-1 forms. 3. **Schedule C Profit and Loss** – A clear and concise summary of profit and loss as reported on Schedule C for self-employed individuals. Each of these summaries is designed to provide critical insights in a simplified format, making it easier for you to understand and manage your tax information.

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Yes, you can call the IRS to request tax transcripts on behalf of your client. However, please be aware that this process can be time-consuming and inefficient. It’s not uncommon to be on hold for up to 45 minutes, only to be connected to the incorrect department. Additionally, there's a risk that the IRS might send a rejection letter by mail, which could arrive up to two months after your initial request. Such delays can jeopardize court-imposed deadlines and potentially create complications for your client's needs. At Tax Transcript Store, we streamline this process, ensuring timely and accurate delivery of the required documents, thereby saving you time and minimizing the risk of administrative delays.

Tax Transcript Store provides a valuable service for individuals and businesses who need to obtain IRS tax transcripts more efficiently. Directly dealing with the IRS can be a lengthy and frustrating process, as evidenced by one of our clients who waited over two months just to receive an IRS rejection letter. Our clients are thrilled to have a workaround, as we streamline the process and significantly reduce waiting times. By leveraging our expertise and direct access methods, we can expedite the retrieval of your necessary tax documents, ensuring you get the information you need promptly and without the extended delays typically associated with IRS requests. This service is particularly beneficial for those facing tight deadlines or urgent needs for accurate tax records.

Yes, it is highly recommended to verify your tax returns directly with the IRS. With the prevalence of over-the-counter software, anyone can create a tax return that appears to be professionally prepared by a CPA. However, discrepancies can still occur, and only verification with the IRS can ensure that your tax information is accurate and up-to-date. At Tax Transcript Store, we specialize in providing you with authenticated tax transcripts directly from the IRS, giving you peace of mind and helping you avoid potential issues related to inaccurate or fraudulent tax returns.

IRS Has Black Hole in Tax Program Costing Taxpayers $500 Mil

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