Posted on 12/23/2022 8:45:35 AM PST by Beave Meister
WASHINGTON — Before Donald Trump became president and after, his exceedingly complex and voluminous tax returns came under regular scrutiny by the Internal Revenue Service. The number of agents assigned to the audit team: one.
After Trump left office, the IRS said it was beefing up the audit team, to three. The tax agency itself acknowledged that it was still overwhelmed by the complexity of Trump’s finances and the resistance mounted by the former president and his sophisticated army of accountants and lawyers, which included a former IRS chief counsel and raised questions early last year about why even three revenue agents should be assigned to audit him.
“With over 400 flow-thru returns reported on the Form 1040, it is not possible to obtain the resources available to examine all potential issues,” IRS agents said of Trump’s tax returns in an internal memo that was released by the House Ways and Means Committee this week as part of its oversight of the mandatory presidential audit process.
(Excerpt) Read more at us.yahoo.com ...
Making more of a big deal out of nothing. The only reason for complex returns is the damn tax code. It is a creature and feature of the gooberment’s own making.
Even fuxnews smeared the returns with innuendo calling the credits and deferrals legally used by Trump’s accountants “loopholes” implying nefarious activity.
Tax avoidance is not just legal but smart and required to survive. Tax evasion is a crime. If you are a smart and good businessman you find people who can avoid and minimize taxes any way possible that is legal.
My advice to friends entering business has always been to understand the tax code as it applies to them better than the IRS and use that understanding to to their maximum advantage.
Nobody wants to understand any of this. They are filled with envy and their minds are warped because of it.
Anyone who gets an “earned income tax credit” is using a tax “loophole” to their advantage and not just avoiding taxes but taking money from others who have paid taxes. I’d call that the greatest tax evasion of them all.
Democrats truly believe that Trump's tax returns are going to have deductions for "Payment to Russian hookers for pee games" and "Bribes to Vladimir Putin" and because they don't it's only because they didn't have enough IRS agents combing through them.
House Ways and Means Committee this week as part of its oversight of the mandatory presidential audit process.
And did they check on all the millions Biden flipped around.
Only democrats have crime family’s in office.
The federal return was over 300 pages, but the California state return was nearly 400 pages, NY state return was over 300 pages, and NYC return was 350 pages. Each store was a separate corporation, requiring a federal return for each store.
Until there is a consumption tax that replaces the income tax, it will only get worse.
Here's my prediction for those new IRS agents: they'll be hired as GS-7s, at roughly $40K a year (plus benefits), hiring will be primarily based on diversity, instead of qualifications, inprocessing and training will take a minimum of six months. Their training will be conducted by IRS supervisors, who are not noted for their skill, either.
These new agents will be unleashed, not on billionaires, but on middle income taxpayers who file a Schedule C (self employment) and claim the Child Tax Credit. Why? These filers generally file their own tax returns, with many being prepared by hand.
IRS swoops in, denies a couple of deductions for expenses, which increases SE income, AND reduces the Child Tax Credit. For a couple of hours work, the IRS gets at least a few thousand back in additional taxes, makes their stats look good.
They aren't going after any returns I prepare. One individual I knew was raising quarter horses, for his retirement activity. He didn't make much money his first 3 years, claiming losses of over $100K. IRS went after him for "hobby" losses.
Over the course of 4 hours, I gave the earnest young agent a class on the economics of raising quarter horses, and the importance of demonstrating a business purpose to his expenses. End result? Every dollar claimed was allowed as a deduction, vs. a hobby loss which would have limited his losses.
The tax code has many rules and deductions available to real estate developers and investors...all legal. The numbers on Trump's returns do not surprise me at all. It's ironic that all of these congress critters complain, when they're the ones who promulgated these regulations.
I now work in the tax department of a large real estate company. These returns are the most sophisticated and complex returns I have ever seen...I'm still trying to grasp the myriad of rules pertaining to real estate development. The individual returns? LOL, I've seen some personal returns where they have over 50 K-1s from their various partnerships. We are very diligent on making sure these returns comply with the tax laws. IRS can audit us all they want, but it will be a fool's errand on their part.
Judge Learned Hand:
“Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.”
Gregory v. Helvering, 69 F.2d 809, 810 (2d Cir. 1934)
“Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”
Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947) - dissenting opinion
In spite of IRS efforts in their rule writing, your account or tax lawyer still functions as your advocate and not an IRS spy.
Admittedly, I had issues with the prebate notion from the outset. But, once I realized it replaces the current model’s zero tac level, that made sense.
I would still prefer it was not a component of the FairTax, I can live with it, for now.
I have a problem with our current systems zero tax bracket. Everyone should contribute to running our nation.
“It’s legalized theft. The future earnings on your retirement nest egg are being sacrificed to advance a woke agenda.”
https://nypost.com/2022/12/06/team-bidens-401k-heist-could-raid-your-retirement-for-a-woke-agenda/
Look at the FairTax model.
“ Look at the FairTax model.”
I have. The “prebate” is a non-starter.
I favor a flat, or far flatter tax with little or no exemptions.
Which is why the FariTx model (HR 25, again) is the right way to fund government, at all levels.
The pre tea is a deal killer for me.
The prebate is a deal killer for me.
It was, for me, as well. However, the underlying notion os to zero out the tax liability for folks on the economic scale at which the currently pay no income tas, anyway.
It is a net-zero component to level the playing field for all of us.
Then you don’t understand the prebate, jdsteel.
I assure you, I do.
Everyone knows Trump's tax returns contain deductions for "Payments to Russian hookers for pee games" and "Bribes to Vladimir Putin."
Because these weren't found, clearly the IRS is underfunded and understaffed.
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