Tax auditors’ sixth sense helps them nab tax evaders

July 1, 2013

Poster of Alexander the seer; click image for more ESP studies

Anyone who has gone head-to-head with an auditor has probably felt like the examiner was staring straight into their tax-paying soul.

They were right.

A German scientist says that tax investigators have a sixth sense that makes it easier for them to sniff out tax evasion.


And that disconcerting finding makes six this week's By the Numbers figure.

"It is already known in psychology that, for example, drug squad officers
use unconscious learning processes to collect experience-based knowledge
of how to identify suspects who then turn out, after checks, to be drug
smugglers," said Enrico Schöbel of the Institute for Public Finance
and Management at Leipzig University.

"A similar
experience-based process takes place with finance administrators dealing
with individual cases," according to Schöbel and reported by The Local.

Schöbel's findings, recently published in the German language journal Perspectives of Economic Policies,
note that while tax inspectors generally cannot explain what makes a
typical tax evader, they unconsciously use their experience, which we typically call instinct, to determine whether there might be something suspect.

Yep, auditors can say, "I see tax cheats."

Stop groaning. You were thinking it.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment