IRS to Cut 50% of Rich People Auditors

The federal government is moving towards cutting half of the IRS workers who audit the wealthiest Americans’ returns.

In addition, “when audits showed the use of complicated schemes to understate the value of assets, the I.R.S. had become increasingly reluctant to pursue cases.”

Why bother repealing real estate tax when you can give it osteoporosis?

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  1. Papercutninja says:

    Thanks Mr. President! We appreciate you watching out for the interests of our country.

  2. Ben Popken says:

    Eric writes:

    “I’d like to point out that in recent years the IRS has shifted enforcement from examining those types of schemes to auditing Earned Income Tax Credits. For those who don’t know, the EITC gives a little help to those in the lowest tax brackets to, you know, eat and stuff. The thing is, if you lose that audit, you also lose the right to even claim the EITC for the next TEN years.

    Regards,
    Former Tax Clinic Guy”

  3. Fenni Fentu says:

    The only way you can lose the EITC for 10 years is by intentionally misleading– lying about the number of dependents, etc. A few years back, I mistakenly calculated that I was due the EITC and was sent back a letter from the IRS stating that they’d determined I was not eligible for it.

    As for enforcing EITC, I don’t see what the problem with that is. The EITC is (as far as I know) the only tax credit that one can receive even if one has no tax liability. So even if you get all your taxes back, you can still get EITC on top of that. So while under ordinary circumstances, a tax refund is “your money” (that is, money that was withheld from your paycheck and sent to Uncle Sam), the EITC is the government’s money being given to you. It’s not a refund of anything. I don’t see why a government should not vigorously enforce giving away money.

    Of course, I don’t think they should be soft on any kind of tax cheat, rich or poor.

  4. Paul D says:

    On which end of the income spectrum does tax-cheating occur more often?

    Call it profiling if you want, but I’ll bet my next refund it’s the rich end.

  5. Special K says:

    Which end of the income spectrum does pretty much every OTHER kind of financial cheating occur more often? I’ll bet your tax refund that it’s the lower end.

  6. Nougat says:

    Both should be looked into, but is it more economical for the govt to investigate 500 people scamming the IRS for $2000, or one guy hiding one million somewhere. I imagine the guy hiding a million finds a lot more sophisticated ways to hide it, such as in making their own non-profit orginization, than the guy that pretends he has two kids instead of one.