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January 05, 2004
IRS Takes Steps to Ensure Its Employees Comply

After a review found that some IRS employees may have used improper deductions to lower their taxes, the IRS says it is taking additional steps to ensure its employees adhere to tax law.

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IRS Commissioner Mark W. Everson announced a multi-step initiative that will include a new review of tax behavior of IRS employees, a deeper IRS compliance and auditing effort for employees, and an expanded education and outreach effort inside the agency.

"For the IRS, enforcement begins at home," says Ecerson. "We are serious about tax enforcement, whether it's our own employees or anyone else not following the law."

The new initiative follows a review by the IRS and the Treasury Inspector General for Tax Administration (TIGTA) involving the tax returns of about two dozen agency employees who filed Schedule C, "Profit or Loss from Business."

About half of the 25 employees identified had tax-compliance issues following an investigation of their Schedule C filings, according to the agency. Several employees in the inquiry have already lost their jobs.

"I am disappointed that a small but unacceptable number of our employees have generated false business deductions to reduce their taxes," Everson says. "We have a zero tolerance standard for abuse of the tax laws by employees."

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