SOUTHFIELD ? American taxpayers have been unrealistically focused on just one date ? April 15. But the IRS has made it clear that it?s not about the 15th anymore, it?s about the government money that can be made through the audit after the 15th.

And because of that aggressiveness, individuals and privately held companies in general had better begin working on a long-term tax strategy.

Government budget shortfalls and the President?s $500 million (7.8 percent) increase in the IRS enforcement budget have sounded the alarm that the federal agents will be more aggressive than ever this year. For example, IRS criminal investigations will receive more than 12.5 percent of revenue next year. The IRS also handed down nearly 2,500 indictments in fiscal 2004 compared to a little more than 1,900 in fiscal 2002, with 2 percent more getting prison time.

?The IRS indictments you?ll see through April 15 are just the tip of the iceberg,? says Raymond & Prokop Tax Group member Paul L.B. McKenney. ?There are many cases right now working their way up the investigatory process to surface in public scrutiny in the courts. In my 30 years in tax law, I?ve never seen the pendulum swing so far, so fast from customer service to aggressive enforcement.?

In 1998, the IRS aggressive audit activity was constrained by an act of Congress. But with staggering federal and state budget deficits the norm in the new millennium, IRS enforcement policies can best be described as overtly aggressive. While the audit rates are still below the mid-90?s levels that caused congress to act, they are definitely on a sharp upswing.

?This is not a passing fancy by any means,? said McKenney. ?It?s what businesses should expect AND plan for.?

The Raymond & Prokop, P.C. Tax Group has been warning closely held (private and family owned) business owners and individual clients with considerable wealth that they are most susceptible, as the IRS has already set its sites on that group.

The 2004 federal tax act signed by the President is also full of lobbying led tax breaks for manufacturing and other prominent Michigan industries. However, the breaks are technical in nature and require a proactive planning attitude and implementation.

The R&P tax group?s immediate advice:

Properly document legitimate deduction positions.

Do your homework to ascertain how you can qualify for tax benefits under the new tax act.

Hire experienced tax counsel to prepare not only for the short term, but more importantly to develop long-term tax strategies.

Raymond & Prokop operates offices in Southfield and Grand Rapids. The Southfield phone number is (248) 357-3010; Grand Rapids (616) 776-1773