2006/01/11

Your Tax Dollars At Rest

The IRS' own taxpayer advocate has reported to Congress that, rather than go after much bigger fish, the agency is targeting America's working poor by flagging their refunds as fraudulent and then simply holding on to the money.

But that's not all. The IRS' criminal division is also refusing to notify the poor bastards because, "...it's not their policy". Though it turns out that 4 in 5 of those questionable returns are for people who, in fact, deserve their refunds, mostly single parents and families below the poverty line who qualify for the earned income tax credit.

So in return for smacking down the working poor--might net $9 Billion in revenue, might not--the IRS is ignoring the $100 Billion in unreported revenue that could be realized if they went after businesses in the shadow economy.

Way to go IRS! Keep my tax dollars at rest.

5 Comments:

The Shadow Economy. Hmmm. Never heard that before. I like that. I assume this is all the money the rich don't report?
Nope... Usually refers to unregulated, unreported, and therefore untaxed business activity.
Why on earth would they go after big business and risk losing all that political fundraising and lobbyist lunches?
What? No smack down of the corporate capitalist pigs running most of the upper echelon?

I thought the IRS was one of the few federal agencies that had some balls left. Nope.
Don't you see? The poor people can't afford lawyers, they're much easier to collect from.

Mike

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