How much money does the IRS waste?

Self | July 12, 2006 | America_Right

[America_Right]

Does anyone know how much IRS bean-counters get paid? If so, I would love to know so I can figure out how much money they wasted going over my 1040 long form (I own a business) to figure out that I owe them $14.85. I don't mind sending them the money, but wow was I ever angry once I got to thinking that they must have spent a few hours going over all my tax stuff. Anyway, I have a feeling that this kind of thing is going on all the time, and if IRS employees make the same kind of ridiculously huge salaries as the rest of the federal employees, that was a LOT of money, time, and effort spent on getting another fifteen bucks out of me.

I just wanted to rant about this, and FR seemed like a good place to do it.

Thanks for listening!

[jrestrepo]

Not sure, but I would bet ALL of it!

[cowboyway]

Two words: Fair Tax

[Clara Lou]

Interesting. I sent them a check for what I owed. They had time to look my return over and determine that they needed to send me a letter asking for copies of two of obscure worksheets I'd never heard of. [Thanks goodness TurboTax printed them for me.] I figure that they hoped they might get $10 more out of me. [Taxwise, I am simple and small potatoes.]

[Harmless Teddy Bear]

About sixty five thousand a year.

[xcamel]

only about .03% of what the US Treasury wastes

[barker]

They once sent me a revised copy of our tax form. Said I owed more money for a deduction I had taken and wasn't entitled to. I sent them a highlighted copy of a page in their instructions that said I could take the deduction. Last I heard from them.

[Man50D]

There is a way to end all the waste. The Fair Tax Act H.R.25 will abolish the IRS and replace all federal income taxes with a consumption/national sales tax and receive 100% of our paychecks. More information can be found at The Americans For Fair Taxation website. Fair Tax ping!

[socialismisinsidious]

From an interesting article from the Heritage foundation 2005 on government bureaucracy waste:
http://www.heritage.org/Research/Budget/bg1840.cfm

9. Earned Income Tax Credit Overpayments The earned income tax credit (EITC) provides $31 billion in refundable tax credits to 19 million low-income families. The IRS estimates that $8.5 billion to $9.9 billion of this amount—nearly one-third—is wasted in overpayments.



An earlier (1994--one can assume that things have only gotten worse) article from the CATO Institute: Why You Can't Trust the IRS
http://www.cato.org/pubs/pas/pa222.html
# The IRS telephone taxpayer assistance program provides about 8.5 million Americans the wrong answers to even the most basic inquiries about the tax laws.
# This year roughly 10 million Americans will receive correction notices from the IRS assessing about $4 billion. About half of those notices will be erroneous.
# About 40 percent of the revenues the IRS collects through penalty assessments are abated when citizens challenge the penalties. In 1993 taxpayers were over- charged $5 billion.
# A General Accounting Office audit of the IRS in 1993 found widespread evidence of financial malfeasance and gross negligence. The IRS could not account for 64 percent of its congressional appropriation.


Another good question would be: how much time/money do WE waste trying to comply with the IRS?

[groanup]

It's like an old, very wealthy guy once asked me. Why can't we just have a national sales tax? Collect it over the state sales taxes and hire 50 clerks to keep up with it and abolish the IRS.

[TexasTransplant]

No IRS = No Waste on IRS

I still want someone from the IRS to tell me why, WHY should I support them and keep the IRS as a part of my life.

KGB has more redeeming values than the IRS on their worst day.

TT

[TexasTransplant]

>>>"Two words: Fair Tax"<<<<<


DITTOS and BUMP

[TexasTransplant]

There is a way to end all the waste. The Fair Tax Act H.R.25 will abolish the IRS and replace all federal income taxes with a consumption/national sales tax and receive 100% of our paychecks. More information can be found at The Americans For Fair Taxation website. Fair Tax ping!



Dittos BUMP!

[Revelation 911]

just got a notice from NYS this morning - my son owes the state $25.01

absolutely ridiculous

[TexasTransplant]

Correction

KGB on their worst day, has more redeeming values than the IRS .

Much better

TT

[America_Right]

Thanks for the info. Maybe I should go back and check to see if I made the mistake or they did before I pay them.

Nah, not worth my time. It would take me a few hours to see if I really need to pay them the $14.88...

[pigdog]

Here's one way to consider it ...

The 2006 budget for the IRS was 12B$ and they have approx. 115,000 employees. Ignoring all other expenses that would give about $104,000 per employee. Even dividing that by 2 gives something (about $52,200) that would work out to a bit over $26.10 per hour.

If the employee spent 1/2 an hour on the matter (ignoring all other costs) ... well ... no wonder our government runs a continual deficit.

[pigdog]

Naw - it'd be a waste to pursue it and they might just audit you out of spite ... and don't think they can't.

Instead - do something productive and start hitting your congresmen (all 3 of them) telling them:

It's time for the FairTax!!!

[lokii]

I got my letter from the IRS yesterday. I was told that I would spend more money arguing with the IRS than just paying the bill. A lot of dough that I just don't have. I guess I’m in that 'small percentage' of the self-employed that will be audited. When you’re faced with the choice of spending ‘who knows how much’ on accountants and lawyers, or paying the fixed fee that the IRS claims I owe, it seems a zero sum game or worse. So even though I reported everything I made... and paid what I owed... I’m still forced to raise the funds to pay the IRS’ claim rather than try and prove the error was not mine. So... until we get the Fair Tax, like the true capitalist I am, I am auctioning my services strictly to raise money to get the IRS off of my back. I guess I’ll “sing for my supper.” Here's How I'm Going Raise the Money... Here's hoping for tax reform! I would sure like to concentrate on raising money for my family and not the government!

[pigdog]

Sure enough ... another one guilty until he prooves his innocence (if ever).