IRS Modernization
The Internal Revenue is currently making significant changes in its' organizational structure. It has reorganized, dividing into four new divisions, each with it's own Commissioner, management team, employees and geographic footprint.
The WAGE AND INVESTMENT operating division will have its national headquarters in Atlanta, GA. This division has some 90 million filers, representing 116 million individual taxpayers, including those who file jointly, and pay about $380 billion in taxes. About 85% earn under $50,000 per year, most pay taxes through withholding, more than half prepare their own returns, most interact with IRS once a year and most receive refunds.
The SMALL BUSINESS/SELF EMPLOYED operating division will have its national headquarters in Washington, DC. This division has 40 million taxpayers, full or partially self-employed and small business, and pay about $915 billion in taxes. They have complex IRS dealings with complex compliance issues and a higher probability for errors.
The LARGE AND MID-SIZE BUSINESS operating division will have its national headquarters in Washington, DC. This division has Corporations, S corporations, and Partnerships with more than $5 million in assets, and pay about $466 billion in taxes. The largest businesses deal with IRS continuously and have in house tax organizations. 10% of this group is examined per year. This division is further divided into the following industries with the headquarters and number of business indicated.
FINANCIAL SERVICES AND HEALTH CARE Manhattan, 40,000 businesses. RETAILER, FOOD AND PHARMACEUTICALS Chicago 25,000 businesses. NATURAL RESOURCES Houston 15,000 businesses. COMMUNICATION, TECHNOLOGY AND MEDIA, San Francisco 12,000 businesses. MANUFACTURING, CONSTRUCTION AND TRANSPORTATION, New Jersey 88,000 businesses.
The TAX EXEMPT/GOVERNMENT ENTITIES operating division will have its national headquarters in Washington, DC. This division serves three groups. EMPLOYEE PLANS. There are approximately 1 million private and public retirement plans with $4.1 trillion in assets. EXEMPT ORGANIZATIONS. There are over 1.5 million tax-exempt organizations, including about 350,000 religious organization with $1.3 trillion in assets. GOVERNMENT ENTITIES. Includes 273,000 outstanding tax-exempt bond issuances with a total value of $1.3 trillion, 86,000 federal, state and local entities and 559 federally recognized Indian tribes.
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It was my pleasure to meet Larry Langdon, Commissioner of the Large and Mid-Size Business Division in Los Angeles in June 2000. |
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e-mail: john@stollercpa.com
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