Those 87K new IRS agents Biden is hiring will be busy.
They said it was to catch tax-cheating billionaires. Oops. "Sorry, we lied".
It's time for average Americans to benefit from personalized IRS service! "Claw back better."
They said it was to catch tax-cheating billionaires. Oops. "Sorry, we lied".
It's time for average Americans to benefit from personalized IRS service! "Claw back better."
Also, where's the 87k number coming from? The treasury department got funding which lets them hire about 87k new employees by 2031, but most of those aren't going to be IRS agents. The number also doesn't account for the number of employees you need to just keep the number of employees steady; people quit and get fired and retire.
Poorer people are significantly more likely to be audited: https://trac.syr.edu/tracirs/latest/679/ - I suspect that it's not that the IRS likes going after poorer people specifically, but that they're more successful in extracting money from people with less money to pay professionals to structure their finances and tax strategy or to defend themselves from an audit.
> A critical limitation in the IRS’s ability to audit millionaires is the availability of IRS revenue agents. Only this class of auditors, given sufficient training and experience, are qualified to examine complex tax returns – the types of returns typically filed by high-income individuals and large-scale businesses.
> With severe budget constraints, IRS has tended to trade off the replacement of revenue agents with hiring more tax examiners. These certainly are paid less, but they are also less knowledgeable. While revenue agents used to outnumber tax examiners, this has slowly shifted over time.
> Since the end of FY 2010, the number of IRS revenue agents has dropped by 41 percent. Initially, the number of tax examiners also fell although not at the same rate. By FY 2016, tax examiners began to outnumber revenue agents for the first time. During FY 2020 and FY 2021, major increases took place in the hiring of tax examiners. Thus, the number of tax examiners has regained all of their lost ground and were actually 1 percent higher than in 2010. See Figure 4 and Table 3.
Middle-class who owns a business (think a Coffeshop, a dental clinic, a small construction contractor, etc...). These medium-small businesses are ripping the IRS big time. With mundane things like claiming everything as deductible, to accepting some cash on the side, to doing the odd unreported transaction, etc...
There are some restaurants in the US that accept only Cash. I don't think the owners of these joints knows what the IRS stands for.
The goal of the current elites is to either materially destroy the middle class or to make them poor.
IRS has limited staff for those cases, can only really nail 200 a year.
Wrong on both marks.
The bulk of tax evasion, both in amount evaded and number of incidents is at the lower end of income.
Every waiter that doesn't report their tips, every side gig, every commingling to the small businesses funds they own, etc...
The ultra rich are audited every other year, and have an army of tax accountants going over every single thing to make sure the report is accurate and compliant with the law.
There is no "wealthy elite dodging taxes and taking money out of the poor people mouths", there is only a morally bankrupt lower class whose every accusation of malfeasance is a confession.
Well, I don't know about I that. I think they just have access to far more sophisticated ways to avoid taxes [0].
No, not right. There are relatively few ultra wealthy elite. 25 million people or families claim the Earned Income Tax Credit, and the IRS estimates that about a quarter of the payments for EITC claims were issued improperly in 2020.
The IRS doesn't have the ability to verify the claims in an automated way since they don't have the data on child eligibility and not all income is reported by employers. So if they are going to get compliance, they would need to audit on a massive scale.
The groups that underreport the most are contractors, followed by small business owners, though this usually comes in the form of over-claiming expenses rather than understating revenue.
Wealthy taxpayers pay accountants and lawyers to do tax planning on them. While some of them do cheat on their taxes, most of them simply find ways to owe less...though as someone who used to provide these services, between about $500k in annual income and around $10 million, there's a donut hole where the fees paid to tax advisors and the expenses incurred to reduce taxes (i.e., charitable donations, etc.) usually exceed the savings from reduced taxes unless the client is willing to maintain the planning structure for 5-7 years.
Seriously, pay your taxes.
https://en.wikipedia.org/wiki/List_of_allegations_of_misuse_...
That said, I'm fine with punishing people who abuse the IRS.
That’s a world of difference in a courtroom.