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re: The real problem with the IRS

Posted on 7/11/14 at 10:19 am to
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 7/11/14 at 10:19 am to
It is a problem, but not the problem. The IRS has more than enough resources for administering our income tax system except for examinations to ensure compliance. The need for examinations is a direct result of the complexity of our tax laws. Simplify the laws and the amount of resources necessary to ensure compliance decreases substantially.

What is the definition of income? Economists have a simple definition, the change in wealth over a period of time. Accountants have a simple definition, revenues minus expenses. And then there is the definition according to Congress that requires Sections 1 through 1564 of Internal Revenue Code.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 7/11/14 at 10:19 am to


I was actually being serious with the topic. No one appears to agree though.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 7/11/14 at 10:21 am to
quote:

It is a problem


Someone agrees.

quote:

Simplify the laws and the amount of resources necessary to ensure compliance decreases substantially.


Wisdom has been unveiled on the poliboard.
Posted by WeeWee
Member since Aug 2012
40257 posts
Posted on 7/11/14 at 10:29 am to
quote:

It is a problem, but not the problem. The IRS has more than enough resources for administering our income tax system except for examinations to ensure compliance. The need for examinations is a direct result of the complexity of our tax laws. Simplify the laws and the amount of resources necessary to ensure compliance decreases substantially.


WeeWee's tax plan for 2016

15% personal income tax (first 15k tax free so the poors don't bitch)
15% corporate income tax
2% federal sales tax that can never be raised

quote:

What is the definition of income?


For individuals whatever you are paid minus your first 15k.
For corporations: revenue minus expenses (must be legit expenses not the family farm had a 5 min stockholders meeting in Destin fl, so we wrote off the whole trip at a cost of 10k).
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 7/11/14 at 10:33 am to
BTW, the Taxpayer Advocate (watchdog type group of the IRS) agrees with me.

quote:

However, this must be understood in the light of the fact the
Congress has underfunded the IRS, overburdens it with new provisions, and, for
the job Congress expects the IRS to perform, IRS is decidedly undermanned.49
A 2014 TAS Objective Report is notable in that the TA states that “Today the
IRS is an institution in crisis. In my view, however, the real crisis in not the one
generating the crisis. The real crisis facing the IRS—and therefore taxpayers—is
a radically transformed mission coupled with inadequate funding to accomplish
that mission.
As a consequence of this crisis, the IRS gives limited consideration
to taxpayers’ rights or fundamental tax administration principles as it struggles to
get its job done.”50


Posted by moneyg
Member since Jun 2006
56944 posts
Posted on 7/11/14 at 10:41 am to
quote:

Tiger n Miami AU83



Getting value out of trolling this board on a topic like this is as embarrassing as expressing this opinion.

Either you are stupid, or you don't feel the need to be honest in your opinions here. Either way, it makes no sense to consider your opinions on any other topic moving forward.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 7/11/14 at 10:41 am to
Here is the source. It really is pretty apparent the problem with the IRS is a lack of funding. On average a new provision is added to the tax code. Congress puts more on the IRS in terms of responsibility and tasks and now they are adding in FATCA and the healthcare bullhell.

Meanwhile, they are cutting funding. It is a BIG problem.

quote:

47 National Taxpayer Advocate 2012 Annual Report to Congress, p. vii.
48 TAS 2012 Annual Report to Congress, p. 2.
49 TAS 2012 Annual Report to Congress, p. 5 states “The significant and chronic underfunding of
the IRS poses one of the most significant long-term risks to tax administration today. Because of
funding shortages, the IRS is unable to answer millions of taxpayer telephone calls or timely
process letters; the tax gap (i.e. the amount of tax due but uncollected) stands at nearly $400
billion each year; taxpayers believe the tax laws are not being fairly enforced against others; and
the federal deficit is unnecessarily large. Some taxpayer problems identified in this report result
from poor planning or execution, and it is important that the IRS not use lack of funding as a
justification for failing to address these problems. However, the lack of sufficient funding is the
sole or significant cause of many taxpayer problems.”

50 See GAO 2014 Objective Report to Congress and Special Report to Congress, p. v.


This post was edited on 7/11/14 at 10:45 am
Posted by Taxing Authority
Houston
Member since Feb 2010
57517 posts
Posted on 7/11/14 at 10:42 am to
quote:

a radically transformed mission coupled with inadequate funding to accomplish that mission.
Yet another hidden cost Obamacare.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 7/11/14 at 10:43 am to
quote:

Getting value out of trolling this board on a topic like this is as embarrassing as expressing this opinion.


Actually it just shows the ignorance of this board on this topic. What I posted is EXACTLY right and pretty much universally agreed on by everyone familiar with the topic including taxpayer representative groups.
quote:


Either way, it makes no sense to consider your opinions on any other topic moving forward.


Cool. Enjoy your ignorance.
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