Report: IRS to cut audits on wealthiest

WASHINGTON, July 23 (UPI) -- The Bush administration plans to cut nearly in half the number of auditors who review tax returns of some of the wealthiest U.S. taxpayers.

Plans call for eliminating 157 of the Internal Revenue Service's 345 estate tax lawyers, The New York Times reported. The cuts will affect audits of taxpayers who are subject to gift and estate taxes when they transfer assets to their children and others, the newspaper said.

IRS Deputy Commissioner Kevin Brown told the Times he ordered the staff cuts because the number of Americans who are subject to the estate tax has fallen under the Bush administration.

However, six IRS estate tax lawyers whose jobs are at risk told the newspaper the cuts are part of a behind-the-scenes move at the IRS to shield people with political connections and complex tax-avoidance devices from thorough audits.

IRS estate tax lawyer Sharyn Phillips said the cuts were a "back-door way for the Bush administration to achieve what it cannot get from Congress, which is repeal of the estate tax."

Brown said the savings from estate tax lawyer job cuts would be used to hire agents to audit income tax returns, especially those from people making over $1 million.