The vast majority of tax returns are wrong. Shoot, virtualy all of them are. The IRS Code is too complex for almost everyone to understand, much less obey. IOW, the tax code has made the entire citizenry into criminals, since, after all, “ignorance of the law is no excuse.”
Yep...what YOU said.....we had to work in Canada (husband on a project there) for several years and the company had a MAJOR accounting firm doing our taxes - they were complicated with all the foreign tax stuff, etc....anyway, we decided when we got THEIR return which said we owed a bunch....to take it to an accountant of OURS - he saved us THOUSANDS of DOLLARS! If you’re going to have to pay a lot to the IRS it pays to get a SECOND OPINION!
I don't need to defend the tax code. Every time it is "simplified", it tends to get more complex. But since most returns are based on W-2 income, and the standard deduction has been increased substantially, it is difficult to see how many of them are incorrect. When one gets into hedging and most trades, yes, there are many ways of making a mistake.
But the code certainly recognizes the distinction between civil and criminal activities. One must have the intention of committing fraud to be handed over to the criminal statutes. Purposely omitting substantial income, or fraudulently reporting income or other items are criminal offenses.
"... There's no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals, one MAKES them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
......just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted -- and you create a nation of law-breakers -- and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game, and once you understand it, you'll be much easier to deal with."
- p.411, Ayn Rand, ATLAS SHRUGGED, Signet Books, NY, 1957
Ayn said is SO much better than I ever could have!