
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 20, 1991                   TAG: 9103200505
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-11   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

IRS REJECTS LOW-INCOME AUDIT PROPOSAL

White House officials proposed earlier this year to force the Internal Revenue Service to audit more low- and middle-income taxpayers but target fewer large corporations, documents obtained by House investigators show.

The Office of Management and Budget contended that stepping up simple mail audits - which affect mainly those with lower incomes - was the easiest way to boost tax collections quickly.

IRS Commissioner Fred Goldberg argued vehemently against that approach.

"IRS would not direct any additional effort into low-income, individual income tax audits as proposed by OMB," IRS officials wrote. "All resources provided for the examination [audit] program should be directed toward the high-asset business and corporate areas consistent with the service's overall compliance strategy."

The dispute came in late December and January as OMB was putting together President Bush's budget for the next fiscal year.

by CNB