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It's not that the IRS is having trouble understanding and applying this particular area of tax law that is troubling and evidence of cultural rot. It's that the IRS attorney's find it OK to back date court documents. If this was an isolated incident, you might conclude that this is a rouge employee stepping outside the rules. "But there are other watchdog claims made by three other partnerships—Arden Row Assets LLC, Basswood Aggregates LLC, and Delwood Resources LLC—who are asking the IRS to admit its staff backdated penalty approval forms in their cases as well" (https://news.bloombergtax.com/daily-tax-report/irs-backdating-court-order-spotlights-culture-attorneys-say). If a DA filed a criminal indictment, and back dated the indictment to get around a statute of limitations problem, would that not destroy the public's confidence in the system? As I learned in auditing class, the fish usually starts rotting at the head. The fact that these IRS employees felt it was OK to back date court documents should raise questions as to the integrity at the top. If there was a culture in the organization that condoned and penalized this type of behavior it most likely wouldn't happen. And it does impact our clients and society at large. Maybe not directly, but it does erode any confidence that tax payers have that they would be treated fairly if they ever had an issue with IRS. And it makes it easier for them to justify padding a deduction or not reporting the income from that side job if they feel, "if the IRS isn't playing by the rules, so why should I."

All of their money, lobbying influence and political contributions will protect them. There will be a negotiated settlement and the class action attorneys will get a very big payday.