Certain IRS audits are wasting time, study says

Audits of S Corporations are turning up blank, raising concerns the Internal Revenue Service is wasting its time according to a report from the Treasury Inspector General for Tax Administration.

62 percent of the audits are finding "no-change," meaning no problems and nothing to correct.

“These results are troubling because, according to the IRS, a high no-change percentage means the agency is spending a significant amount of resources on unproductive audits and burdening compliant taxpayers with unnecessary audits,” said J. Russell George, the inspector general.

This follows a report last week that IRS audits of business partnerships were coming up blank.