IRS audits more poor people than rich people...because it's easier.

Discussion in 'The War Room' started by panamaican, Oct 10, 2019.

  1. zebby23

    zebby23 Silver Belt

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    That’s a good one about Duffy. Mind if I use it?
     
  2. Swing

    Swing Brown Belt

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    Rick Scott seems competent.
     
  3. zebby23

    zebby23 Silver Belt

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    not sure if serious
     
  4. Crocop42

    Crocop42 Brown Belt

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    I hate you
     
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  5. Swing

    Swing Brown Belt

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    the joke is that he's a competent criminal.
     
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  6. zebby23

    zebby23 Silver Belt

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    Well that’s not very nice. I don’t hate you. Just wish I could help you
     
  7. Crocop42

    Crocop42 Brown Belt

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    I was just being sarcastic. I don't hate you
     
  8. zebby23

    zebby23 Silver Belt

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    me too, I don’t want to help you
     
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  9. Renard

    Renard Black Belt

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    Catch-22 basically. You can't retain experienced auditors because the salaries are shit and it's hard to get permanent status, so you can't audit rich people to gain more income because the novice examiners don't know what they're doing. That's assuming the audit won't be blown out by teams of well-paid corporate lawyers and accountants, which it definitely will.

    Of course that's even assuming the IRS, a public institution with no profit motive and by definition much less oriented towards efficiency than the private sector, would actually spend their increased income judiciously. Probably not.
    I like all the social services we have in Canada, but I've talked to a lot of people who work in the public sector - the amount of waste and inefficiency is staggering. Bosses getting paid first-class tickets when they're supposed to fly economic, hiring of completely incompetent IT staff to manage government systems, horrible employees who unfirable because they have seniority, mismanagement of resources because it's "nobody's money" and no one cares.
     
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  10. Crocop42

    Crocop42 Brown Belt

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    Don't want or need help.
    <GinJuice>
     
  11. LogicalInsanity

    LogicalInsanity Love all of you sexy bitches

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    In my experience, these are the primary reasons why some of my clients were audited:

    1) underreporting income
    2) claiming dependents that are not theirs
    3) really shady "business expenses" and bogus Schedule C income.
     
  12. xcvbn

    xcvbn Silver Belt

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    Calm down comrade. We just need slight tweaks to the system.
     
  13. Armbars

    Armbars Oops!

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    Same here in the UK.

    Also, the tax man here in the UK ignores travellers(gypsies), Pakistani non british born, amongst others. Simply because they are too difficult to investigate. The middle man is easier, the records of the middle man and his entire life are easily accessible.
     
  14. waiguoren

    waiguoren Silver Belt

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    Repeal the 16th Amendment to the US Constitution, thereby eliminating the federal income tax and the IRS (with its $11 billion annual budget). Problem solved.
     
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  15. Crocop42

    Crocop42 Brown Belt

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    My coworkers do this shit all the time. They claim kids that aren't theres, change dependent numbers to false numbers for bonus checks etc. A lot of people think they can beat the system because the government doesn't waste time on poor people.
     
  16. KONG-D'SNT-TAP

    KONG-D'SNT-TAP Titanium Belt

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    Oh look disgusting criminal republicans have their hands all over this. Who would’ve guessed.

    Keep voting right wing middle class rubes.
     
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  17. SammyPops

    SammyPops Gold Belt

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    I guess I'm having trouble thinking that poor people pay enough taxes that they can really owe that much if caught.

    I wonder how much the IRS needs to collect in your scenario?
     
  18. IngaVovchanchyn

    IngaVovchanchyn Titanium Belt Platinum Member

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    Government bureaucracies only rarely care about costs like that. It's not their money they are spending anyway.

    The IRS should be razed and we should start over. Wasn't long back when they were auditing organizations for political motives. Now they are grinding the poor and letting the wealthy skate. It is too politicized and too lazy to be entrusted with the amount of power it has been given.
     
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  19. LogicalInsanity

    LogicalInsanity Love all of you sexy bitches

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    Yea, I had one co-worker who used an old 1098-T to claim the American Opportunity Credit.

    said she went to school full time to maximize this education credit. Surprisingly, the IRS did pay her.

    I warned her, "the IRS will find out, maybe not today...maybe not next year, but it's only a matter of time before they match up the EINs that you reported.
     
  20. panamaican

    panamaican Senior Moderator Staff Member Senior Moderator

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    My limited experience there is that it's usually a couple hundred bucks per. But since the cost is just the form letter plus the time to update the digital information, it's a very low cost audit from the government's side. The discrepancy is handled via a smaller refund, so there's no real collections cost either.

    It's pretty simplistic stuff.

    And poor working people pay plenty in taxes. At the minimum, they're paying 15% in payroll. Even on a $20k/yr income that's $3k in taxes from which any refund can be reduced.
     
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