In the past decade alone, the number of audits conducted by the IRS has been at its lowest level but there are two people in the United States that are sure to be audited yearly – the president and the vice president.
It is guaranteed that each year, the president along with the vice president will be subjected to auditing by the IRS.
The IRS clarified that the mandatory auditing to the tax returns of the president and the vice president has always been conducted by the IRS as per indicated in the Internal Revenue Manual which has been published since the era of the Watergate.
During the time of President Nixon and Spiro Agnew, the Vice President then, they have also been included in issues surrounding their personal tax. This happened during the time when the Watergate scandal has been revealed to the public. After which, Agnew admitted that he conducted tax evasion and therefore gave his resignation.
The manual has a very detailed instruction when conducting the audit for the president and the vice president. The instruction clearly said that the tax returns of the two individuals must be placed inside an orange folder upon filing.
Only one specified personnel is allowed to inspect the returns. The filings must be kept inside a locked cabinet or secure drawer at all times unless there is the presence of the appointed examiner assigned by the IRS>
The audits are instructed to be handled as fast as possible. The manual indicated that expedite handling is required at all levels of the processing to the make sure the exam will be done quickly.
Regarding the yearly auditing of the two highest individual in the country, a formal rationale was not offered by the IRS. According to Joseph Thorndike, a tax historian, one of the reasons why the audit is conducted every year must be due to the desire of the government that their highest officers should be following the law when it comes to taxes.
For ordinary citizens, being audited is not an easy feat thus it is important to always have tax audit insurance.