Real Time Audit – It is the Time to Act?
5 Pages Posted: 2 Jul 2011 Last revised: 13 Jul 2011
Date Written: June 28, 2011
The U.S. is facing one of its hardest economic crises. Its economy has not recovered from the 2008 downturn, and the light at the end of the tunnel is far, far away. The government and the Internal Revenue Service (“IRS”) are seeking revenue sources in order to reduce its budget deficit. However, raising the income tax rates is politically difficult and may lead to further loss of jobs. In this political situation, it is important to try to find ways to raise more revenue without raising tax rates. One possibility of doing so is “real time audit”: Auditing transactions when they occur, rather than months or years later.
Keywords: tax administration, audit
JEL Classification: H25
Suggested Citation: Suggested Citation