“Shortcuts” shortcut taxpayer rights: “Non-audits,” IRS math errors, lack of notice,
and delays. To keep up with its rising workload, the IRS is increasingly relying on automated
data-matching procedures to identify potentially inaccurate claims and adjust
tax liabilities. However, automated processes are inherently imperfect so the taxpayer’s
return position often turns out to be correct. Moreover, taxpayers subject to audits are
entitled to established taxpayer rights protections, but an increasing number of IRS adjustments are not classified as audits so these protections often do not apply. Throughout
the report, Olson describes IRS practices that “harm taxpayers by acting on assumptions
of noncompliance arrived at by automated processes that do not solicit, encourage, or allow
taxpayer response.”