Tag: IRS

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Accountability national politics & policies tax policy

Won’t Come A‑Knockin’

IRS, audit, tax, taxes

The Internal Revenue Service says it will end “most” surprise visits to homes, like the one an agent made to the home of journalist Matt Taibbi the day he was telling Congress about governmental use of social media to censor people.

According to IRS Commissioner Danny Werfel, the many surprise visits each year looked bad, and “making this change is a common-​sense step.” (The IRS wants to still be able to surprise-​visit taxpayers whose assets it is seizing.…)

Let’s hope that the reform, even if partial and inadequate, is for real. It’s long overdue.

But can we trust these “revenuers”?

The agency periodically says that it will now respect taxpayer rights, now be nicer, etc., usually soon after publicity about awful IRS abuses. As a result of such attention, some IRS personnel are then probably nicer in some ways to some taxpayers sometimes.

And things could always be worse.

Indeed, they may be getting worse. Our Congress recently moved to expand IRS funding by $80 billion over the next ten years (part of the laughably named Inflation Reduction Act). Over the last few years, the IRS has spent millions on “weaponry and gear.” And the question of what to do about the latest bad-​looking IRS abuses of the taxpayer never seems to go away.

It will probably never be realistic to expect the IRS to always play nice and in strict accordance with all pertinent legalities and constitutional rights.

But if the Congress that funds the IRS actually represented us, the American people, maybe these issues would’ve been solved a long time ago. 

This is Common Sense. I’m Paul Jacob.

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crime and punishment deficits and debt tax policy

Just Say NO to the IRS

taxes, Bernie Sanders, Nancy Pelosi, Congress, audit, IRS

The IRS wants to do your tax returns. Should we let it?

On this question, the agency has stacked the deck in its favor by commissioning an “independent” review by a left-​wing think tank, New America, already on record in support of giving IRS officials authority to do this.

Basically, the IRS handed $15 million (of taxpayer money) to New America to say “Yes, based on our very independent review, we agree with you and ourselves about thus expanding your power over taxpayers.”

Under the proposed IRS Direct File program — already being tested in a pilot program — taxpayers would use government software to let IRS crunch the tax numbers.

Mark Tapscott’s report for Epoch Times cites many objections to the scheme.

Among the most pertinent is voiced by David Williams, president of Taxpayers Protection Alliance. He notes that when individuals and private tax preparers fill out tax forms, they’re typically trying to keep the tax take to a minimum. But the IRS won’t have the same incentive to maximize deductions and refunds.

Moreover, “There is no reason to trust the IRS with even more sensitive financial information.…”

Participation in the IRS Direct File program would not be mandatory, at least not initially.

Once established, though, the program would make it easier to mandate participation for at least some categories of tax returns. 

And let us not pretend that such a development would be surprising. Governments tend to use precedents of newly granted power to expand that power.

This is Common Sense. I’m Paul Jacob.

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government transparency insider corruption national politics & policies

The Regime Shows Its Fangs

IRS, corruption, power

“No one thinks it’s a coincidence,” says Rep. Jim Jordan, chairman of the Select Subcommittee on the Weaponization of the Federal Government. “Everyone thinks this was done for intimidation reasons.”

The “this” was a visit by the Internal Revenue Service to the home of journalist Matt Taibbi while he was testifying to Congress about his Twitter revelation research.

Normally, the Regime’s collection wing, the IRS, does not just ‘stop on by’ unannounced.

The timing, Rep. Jordan suggested, is suspicious.

And the condemnations are coming in from more than just the “right.” A journalism professor at DePauw University joined the tide of free speech advocates to note that the “this” indeed “runs contrary to every principle” of the American press freedom as instituted in the First Amendment. 

The IRS has not so far clarified the visit, and Jordan is threatening to subpoena all documents related to the event.

Journalist Sharyl Attkisson — who “has long contended the Justice Department during the Obama administration illegally surveilled her while she was at CBS News,” explains Fox News — not unreasonably contends that the “IRS would have to know how their visit to Taibbi’s house would be construed, which suggests that’s exactly as they wanted it.”

The chilling effect is by design.

But why would The Regime be so blatant?

So clear in intent and corrupt in method?

Does The Regime feel impregnable?

Maybe the old lore of deviltry and contracts with the Principalities and Powers is true: evil feels compelled to signal what it is doing, at least nominally. Leaving it up to good people to see the signs.

Which we now cannot unsee.

This is Common Sense. I’m Paul Jacob.

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crime and punishment general freedom tax policy

Voting for Audits

IRS, tax audit, taxes

Eighty-​seven thousand new IRS agents!

What could possibly go wrong?

In a bill passed and signed last August, “$80 billion worth of new funding over the next decade” was shoveled at the Internal Revenue Service “so it could” — as a recent Reason article summarizes — “hire 87,000 new workers, purportedly to better target millionaire and billionaire scofflaws.”

The assurance that the new investment in personnel would not be directed towards “those making under $400,000 annually” was, as Reason’s Liz Wolfe makes clear, “not provided within the text of the actual bill.”

Ah — political promise over actual law and all bureaucratic experience. The IRS, you see, prefers to focus its audits on the lowest income earners, who were audited more often than millionaires.

Why? Well, the key is one feature of the tax code: the earned income credit. Which, it just so happens, is easy to get wrong. And upon which lower-​income workers have come to rely.

The other reason is even more basic: “given a dearth of experienced auditors not likely to be fixed soon, the agency would rely on the easiest and least time-​consuming types of audits.” Which are conducted through the mail. Easy. Cheap. And annoying.

Even with more IRS auditors with more experience, this path of least resistance — these earned income credit audits — will likely get the most use.

The reasons behind the reasons? Why were Democrats so eager to increase the ranks of tax collectors? Sure, Democrats love taxes. But like most tax hikers, they promote the idea that others will pay all those taxes; they promise to stick it to the rich … while ever-​so consistently missing the mark and whacking the poor and middle classes.

This is Common Sense. I’m Paul Jacob.

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Fourth Amendment rights general freedom tax policy

Not Inadvertent

political donations, IRS, government surveillance, privacy

Maybe we can put a stop to the assault on the privacy of donors to political causes.

By “we” I mean The Buckeye Institute and the Institute for Free Speech, who have teamed up to challenge “a decades-​old law that forces the IRS to demand that nonprofit charities hand over the private information of their largest donors every year.”

The IRS itself admits that collecting this personal data “poses a risk of inadvertent disclosure.”

Also a risk of fully advertent disclosure. 

The IRS has often been used to harass the political enemies of federal officials in a position to tell the agency what to do.

Buckeye Institute President Robert Alt reports the Institute’s own experience as Exhibit A. In 2013, soon after it had urged Ohio to reject Obamacare-​inspired efforts to expand Medicaid, the Institute was subjected to an IRS harassment-audit.

The specter of this investigation was a scary one for the Institute’s major donors, who reasonably assumed that the audit was retaliatory. They worried that if their own names came up during the audit, they too would be subject to IRS attention. Many donors drastically scaled back their giving so they’d be less of a target; others stopped donating altogether.

Prospects for the Institutes’ litigation are good. The U.S. Supreme Court determined in a 2021 ruling that the government must at least consider “the potential for First Amendment harms before requiring that organizations reveal sensitive information about their members and supporters.”

Anonymity in political activism has a long American history — from the start, actually.

It’s what democracy looks like.

This is Common Sense. I’m Paul Jacob.

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Fourth Amendment rights privacy tax policy too much government

A Closer IRS

IRS, privacy, banking, audit

Congressman Jared Golden, a Democrat in a Trump district, may be feeling heat.

“First, Nancy Pelosi said she’d raise taxes. Now, she’s coming for what’s left,” warns an American Action Network television advertisement airing in Golden’s Maine district. 

“To help pay for trillions in new spending, Pelosi wants the government to spy on nearly every American bank account, looking for new money to spend,” the spot continues. “Your deposits, payments, bank balance … under Pelosi’s plan, the government monitors them. 

“Call Jared Golden and tell him to … keep the government out of your bank account.”

Fact-​checking the spot, News Center Maine determined that, “yes, as part of that plan, banks would be required to give two additional pieces of information to the IRS: how much money went into certain bank accounts over the course of the year and how much came out.”

Those “certain” accounts started out being those with $600 going in or out. After the public uproar, the plan hiked the amount to $10,000. 

Same principle, though.

“The only way to ensure that upper-​income taxpayers pay what they owe,” explained a U.S. Treasury press release, “is by giving the IRS the resources and information required to close the tax gap.”

But does our system work that way? Not according to the Fourth Amendment.

We do not keep “a closer eye” on people making a certain amount; it is un-​American to require all such “suspects” be put through the wringer the better to find a few guilty of something.

This is Common Sense. I’m Paul Jacob.

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