I.R.S. Audits of Working Poor Increase

New York Times ^ | March 1, 2002 | By DAVID CAY JOHNSTON

[vannrox]

This is a bad sign.

[The Other Harry]

Earned Icome Tax Credit

[Texaggie79]

[antaresequity]

He he e he ...I would never advocate not paying taxes...but its amazing what you can do with an offshore LLC, that owns a Nevada LLC, that owns a Wyoming LLC....you get my drift...These imbiciles sheer sheep...try not to move with the herd...

[Free the USA]

Check the Bump List folders for articles related to the above topic(s) or for other topics of interest.

[Vigilanteman]

A major reason that the IRS goes after the working poor is because they do not have the resources to hire lawyers or accountants. They are easily intimidated and tend to cave. Because this is easier than going after major tax cheats, IRS agents know that intimidation of the working poor earns promotion points faster than anything which would produce actual revenue.

Revenue is a secondary objective of taxation. The major objective is striking fear into the hearts of the sheeple so that they obey. If the Pubbies would grow balls and take on this issue, it would go a very long way to getting the working poor off the DemocRAT plantation. (Notice who states like Idaho and Wyoming elect which have a huge share of working poor in their population and, coincidently, are among the few states where the country clubbers do not dominate the Republican Party machinery.)

[LenS]

The EITC is probably the biggest source of fraud among taxpayers. Since EITC fraud is often a lot easier to prove than some of the more complex stuff, IRS enforcement dollars spent here can generate a correspondingly larger amount of dollars restored to the US treasury.

The problem with the EITC is that it's $2,000 to $3,000 payment is huge temptation even for people who make above $50,000. The key to the fraud is people either pretending to be not married or using two different addresses to split up family income (to meet the income limits) or ignoring the fact that when an unmarried couple lives together, the much higher income of the live-in boyfriend if he lives there for most of the year invalidates single mom's eligibility.

[usconservative]

The EITC is probably the biggest source of fraud among taxpayers. Since EITC fraud is often a lot easier to prove than some of the more complex stuff, IRS enforcement dollars spent here can generate a correspondingly larger amount of dollars restored to the US treasury.

Seems to me the quickest way to end this FRAUD and ILLEGAL RE-DISTRIBUTION OF WEALTH is to eliminate the EITC. While we're at it, get rid of the f'ing IRS TOO!!

Why should *I* have to pay a higher tax rate to fund someone who can't even make enough money to pay taxes?

Far as I'm concerned, the IRS can and SHOULD crack-down on these EITC cheats! I'm sick and damn' tired of the damn' tax code taking away MY money to re-distribute to so-called working "poor!"

ENOUGH ALREADY! I'm sick and damn' tired of being penalized for being successful and making a good living, while some SLOTH gets my money via the EITC for sitting on his/her ass, or not being smart enough to advance themselves.

[The Other Harry]

The EITC is probably the biggest source of fraud among taxpayers...

Yep. Great concept. Terrible invitation to fraud.

[NetValue]

"A major reason that the IRS goes after the working poor is because they do not have the resources to hire lawyers or accountants. They are easily intimidated and tend to cave. Because this is easier than going after major tax cheats, IRS agents know that intimidation of the working poor earns promotion points faster than anything which would produce actual revenue. "

The above is another Democrat LIE.

The reason the IRS is bearing down on the so-called working poor is because of their fraudulent claims for the Earned Income Tax Credit. Congratulations to the IRS for cracking down on this Democrat welfare fraud using the tax system.

[gfactor]

Audits of the working poor accounted for 55 percent of all audits last year, reflecting the policy set in 1996 by Republican Congressional leaders with the agreement of President Bill Clinton.

would it be the same repubs who want to run the govt like abusiness? now how long would a business last if it devoted resources to its smallest revenue streams?

[Samizdat]

The IRS is a government sponsored terrorist organization. So much for the war on terror.

[VRWC_minion]

He he e he ...I would never advocate not paying taxes...but its amazing what you can do with an offshore LLC, that owns a Nevada LLC, that owns a Wyoming LLC....you get my drift...These imbiciles sheer sheep...try not to move with the herd...

They are not that stupid.

[VRWC_minion]

Most of the EIC so called audit is merely a letter asking for add'l documentation. However a corporate audit is a minimum three day site visit.

[VRWC_minion]

A major reason that the IRS goes after the working poor is because they do not have the resources to hire lawyers or accountants.

Thats silly. The main reason is the EIC is a refundable credit and scam artists create imaginary taxpayers to get free cash from the IRS.

[Rubber Ducky]

The above is another Democrat LIE

Not so. Former Congressman George Hansen of Idaho published an exhaustive book on IRS practices. It was well documented and quoted extensively not only from former IRS agents who had quit in disgust, but waitresses who were taxed on tip income they never got.

For his trouble, Congressman Hansen (a conservative Republican, btw) was railroaded out of congress on totally bogus campaign finance law violations. After losing his seat in a narrow election orchestrated by these alleged law violations, Congressman Hansen was railroaded through the federal penal system before finally having all charges thrown out 5-6 years later.

I was acquainted with George Hansen when I was a college student-- a finer more honorable patriot you'd never meet. It was thanks to the country club Republican set who refused to stand up for people like him and their treatment of Ronald Reagan (who I campaigned for in 1976) that I became a Democrat. Both of North Dakota's senators are former State Tax Commissioners who understood the IRS abuses and cleaned up the state tax department as their ticket to higher office, where they've since become part of the tax and spend establishment.

If Republicans could only see this and champion the cause of the working poor, they wouldn't have to settle for being socialism lite. Ronald Reagan understood this, but too many fat cat Republicans have forgotten.

[antaresequity]

They are not that stupid.

Been sheered? I have...now do the two step

[Justa]

"A major reason that the IRS goes after the working poor is because they do not have the resources to hire lawyers or accountants. They are easily intimidated and tend to cave. Because this is easier than going after major tax cheats, IRS agents know that intimidation of the working poor earns promotion points faster than anything which would produce actual revenue."

I don't know about that. I got audited for a year which I was unemployed in and going thru medical treatment. It was because I'd made stock transactions and hadn't reported them. It took many hours and about 20 pages of documentation but it was all simple, straightforward stuff. Nothing an auditor would be needed for. I had to show every stock transaction I'd made over the previous two years versus my bank account activity to show my withdrawl from savings wasn't a reportable net income off of the stock trades. It wasn't fun, but my case cleared on the first attempt. I just can't imagine how someone without money would need an auditor or a battery of lawyers for an audit. I'd agree with others that these audits are for the EIC.

[Jesse]

The reason the IRS is bearing down on the so-called working poor is because of their fraudulent claims for the Earned Income Tax Credit. Congratulations to the IRS for cracking down on this Democrat welfare fraud using the tax system.

Agreed. In fact, the "working poor" don't have federal tax liabilities since they get this EITC. I think another reason audits for high income earners are down is because the ruthless efficiency of the tax system is such that most high income types are not in a cash business, and with all the reporting requirements and need for tax ID numbers, etc. the IRS probably knows as much about people's income and expenses as the taxpayer. No need to audit except for show when you know everthing already.

[speekinout]

I will go off to look for the reference, but a story that appeared rather recently refers to a man who was processing IRS returns for Blacks so they could get "reparations".
He's in jail, of course. But if the IRS doesn't "audit" the returns, they simply pay what you claim. They paid these phony "reparations" for a surprising number of Blacks, and many of them were lower income.
The IRS is now "auditing" the returns for people they think are making the claim (and, no, I don't know what his scheme was, how so many got away with it, or how the IRS knows which returns to audit). But this scheme has certainly resulted in thousands more audits for lowerincome tax payers.