Estate Tax Audits Resulting in Fewer Changes, Reduced Tax

The Wall Street Journal reported today that approximately 40% of audits of 1992 estate tax returns resulted in either no change or a reduced tax. The IRS audited about 19% of all estate tax returns filed for 1992.

In many cases a reduced tax resulted from a decline in the value of property originally reported on the estate return.

Nearly 20 percent of the 1992 estate returns that were examined resulted in no change in the tax computation.

The results of the 1992 audit are being heralded as good news. Another possible interpretation, however, is this: Is it not surprising that only 20% of the 1992 estate tax returns under examination were deemed to have been filled out properly? Are the returns so complicated that only one in five can be completed without error, or is it the case that most estate tax returns are being filled out by people with little or no tax expertise? Your comments are welcome.

You may like these other stories...

Senate Takes Different Approach from House for Highway and Bridge FundEarlier this week, according to a New York Times article, the Senate agreed to fill the coffers of the fund that pays for highway and bridge repairs with...
There it stands, your client's 100-year-old, rickety, vermin-infested barn or former hotel or whatever the darn thing once was. And she's considering what to do with it. There are two words that can help her decide...
It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.