Last week our firm hosted a small group of clients and friends for lunch and to listen to the former head of IRS talk for an hour. He spoke about a lot of things, The Affordable Care Act, IRS staffing, budget issues, and also mentioned inversions. He said that the biggest threat to our tax system is identity theft and that the IRS has dedicated many staff members to combat it. Because of the focus on identity theft, resources have been taken away from tax audits and the individual taxpayer audit rate is expected to sink to one of the lowest in recent history. He was hopeful that tax reform would become a priority in the next administration. He touched on the Affordable Care Act and mentioned that though it’s flawed, it’s here to stay. In time he is hopeful that modifications will be made to it, which will make it more efficient.