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#internal revenue service
phoenixyfriend · 1 day
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"I think the US should have an automatic income tax system instead of forcing us to do it ourselves."
Great!
Increase funding for the IRS.
They've been chronically underfunded since the 1980s.
You want a simpler tax system that impacts rich people as much as the impoverished and the middle class?
Fund the IRS so they have the manpower to do it.
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saywhat-politics · 1 month
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The nation’s millionaires and billionaires are evading more than $150 billion a year in taxes, according to the head of the Internal Revenue Service.
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robertreich · 2 years
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You Are Being Lied to About the IRS
The IRS is set to receive its largest funding increase in years thanks to the Inflation Reduction Act.
You know who should be worried about this?
Wealthy Americans who dodge taxes.
Recent figures estimate that the richest 1 percent are hiding more than 20 percent of their earnings from the IRS, accounting for more than a third of all unpaid federal taxes. 
Some estimates show that collecting all unpaid federal income taxes from the wealthiest Americans could generate anywhere from $200 billion to $1.75 trillion over the decade.
So why hasn’t our government been able to collect all that untaxed money from the richest of the rich? Because the IRS has been underfunded and severely understaffed – thanks in large part to a decades-long campaign from Republicans to transfer wealth to the top.
Over the past 10 years, the IRS budget has been reduced by roughly 20%. Its staffing is at a level not seen since 1973 although the American population is about a third larger now.
On top of that, the tax returns of the wealthy are very difficult, time consuming, and incredibly costly to audit – and rich taxpayers often have platoons of lawyers and accountants that shield them from tax liabilities.
Without proper resources, it’s harder for the IRS to go after the wealthiest Americans who avoid paying their fair share.
As a result, just 2% of the richest Americans had their taxes audited in 2019, down from 16% in 2010.
Meanwhile, the poorest Americans – who often claim a tax break known as the earned income tax credit – are five times more likely to get audited because their tax returns are less complex, and because of pressure from congressional Republicans to root out incorrect payments of the credit.
When the IRS can’t function properly, all taxpayers aren’t off the hook evenly – and the result is a tax system stuck in a cycle where the working class bears the brunt while the rich hoard wealth that could be used to invest in America.
So, don’t believe the lies coming from the oligarchs and their propaganda machine– it’s all fear mongering. The 1% have an incentive to keep the IRS hobbled and unable to excavate their hidden wealth.
They also know the public is against them – boosting the IRS budget to strengthen tax enforcement on high-income taxpayers is a popular policy supported by more than two-thirds of registered voters.
IRS funding is a good thing. It means the agency can finally go after the real freeloaders in America: The super-rich.
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bitchesgetriches · 3 months
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Would You Rather Owe Taxes or Get a Tax Refund This April? The Answer Might Surprise You!
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The nation’s millionaires and billionaires are evading more than $150 billion a year in taxes, adding to growing government deficits and creating a “lack of fairness” in the tax system, according to the head of the Internal Revenue Service.
The IRS, with billions of dollars in new funding from Congress, has launched a sweeping crackdown on wealthy individuals, partnerships and large companies. In an exclusive interview with CNBC, IRS Commissioner Danny Werfel said the agency has launched several programs targeting taxpayers with the most complex returns to root out tax evasion and make sure every taxpayer contributes their fair share.
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Werfel said that a lack of funding at the IRS for years starved the agency of staff, technology and resources needed to fund audits — especially of the most complicated and sophisticated returns, which require more resources. Audits of taxpayers making more than $1 million a year fell by more than 80% over the last decade, while the number of taxpayers with income of $1 million jumped 50%, according to IRS statistics.
“When I look at what we call our tax gap, which is the amount of money owed versus what is paid for, millionaires and billionaires that either don’t file or [are] underreporting their income, that’s $150 billion of our tax gap,” Werfel said. “There is plenty of work to be done.”
“For complex filings, it became increasingly difficult for us to determine what the balance due was,” he said. “So to ensure fairness, we have to make investments to make sure that whether you’re a complicated filer who can afford to hire an army of lawyers and accountants, or a more simple filer who has one income and takes the standard deduction, the IRS is equally able to determine what’s owed. And to us, that’s a fairer system.”
Some Republicans in Congress have ramped up their criticism of the IRS and its expanded enforcement efforts. They say the wave of new audits will burden small businesses with unnecessary bureaucracy and years of fruitless investigations and won’t raise the promised revenue.
The Inflation Reduction Act gave the IRS an $80 billion infusion, yet congressional Republicans won a deal last year to take $20 billion of the funding back. Now they’re pressing for further cuts.
The Treasury Department said last week it estimates greater IRS enforcement will result in an additional $561 billion in tax revenue between 2024 and 2034 — a higher projection than it had initially stated. The IRS says that for every extra dollar spent on enforcement, the agency raises about $6 in revenue.
The IRS is touting its early success with a program to collect unpaid taxes from millionaires. The agency identified 1,600 millionaire taxpayers who have failed to pay at least $250,000 each in assessed taxes. So far, the IRS has collected more than $480 million from the group “and we are still going,” Werfel said.
On Wednesday, the agency announced a program to audit owners of private jets, who may be using their planes for personal travel and not accounting for their trips or taxes properly. Werfel said the agency has started using public databases of private-jet flights and analytics tools to better identify tax returns with the highest likelihood of evasion. It is launching dozens of audits on companies and partnerships that own jets, which could then lead to audits of wealthy individuals.
Werfel said that for some companies and owners, the tax deduction from corporate jets can amount to “tens of millions of dollars.”
Another area that is potentially rife with evasion is limited partnerships, Werfel said, adding that many wealthy individuals have been shifting their income to the business entities to avoid income taxes.
“What we started to see was that certain taxpayers were claiming limited partnerships when it wasn’t fair,” he said. “They were basically shielding their income under the guise of a limited partnership.”
The IRS has launched the Large Partnership Compliance program, examining some of the largest and most complicated partnership returns. Werfel said the IRS has already opened examinations of 76 partnerships — including hedge funds, real estate investment partnerships and large law firms.
Werfel said the agency is using artificial intelligence as part of the program and others to better identify returns most likely to contain evasion or errors. Not only does AI help find evasion, it also helps avoid audits of taxpayers who are following the rules.
“Imagine all the audits are laid out before us on a table,” he said. “What AI does is it allows us to put on night vision goggles. What those night vision goggles allow us to do is be more precise in figuring out where the high risk [of evasion] is and where the low risk is, and that benefits everyone.”
Correction: The IRS has collected $480 million from a group of millionaire taxpayers who had failed to pay. An earlier version misstated the amount collected.
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ancappunk · 1 year
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b0bthebuilder35 · 2 years
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And we don’t even get any say in where our tax money goes.
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kp777 · 3 months
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trutown-the-bard · 2 months
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The IRS spent billions making their new free file tool and it has less features than even Turbo Tax’s free file tool.
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saywhat-politics · 2 months
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Administration officials are using the report to promote President Joe Biden's economic agenda as he campaigns for reelection — and as the IRS faces threats to its funding.
WASHINGTON (AP) — The IRS is poised to take in hundreds of billions of dollars more in overdue and unpaid taxes than previously anticipated, according to new analysis released Tuesday by the Treasury Department and the IRS.
Tax revenues are expected to rise by as much as $561 billion from 2024 to 2034, thanks to stepped-up enforcement made possible with money from the Democrats’ Inflation Reduction Act, which became law in August 2022.
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nodynasty4us · 5 months
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From the October 30, 2023 article:
The House GOP under Speaker Mike Johnson has put forth legislation to provide aid to Israel for its war against Hamas terrorists, but in what some say is an unprecedented move Republicans are claiming they must include “offsets” to pay for the $14.3 billion package. Those “offsets,” or “pay-fors,” some say, will actually cost Americans more money: they come from cuts to the IRS.
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Aaron Fritschner, the Deputy Chief of Staff for U.S. Rep. Don Beyer (D-VA) points out: “This is not an ‘offset’ and the use of that word in this context is not appropriate. Every relevant authority from CBO [Congressional Budget Office] on down has said that cutting IRS funding this way would *increase* deficits. This isn’t an offset, it’s exploiting a war to pass a tax cut for the rich.”
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bitchesgetriches · 3 months
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✨ NEW POST! ✨
Would You Rather Owe Taxes or Get a Tax Refund This April? The Answer Might Surprise You!
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twurytle · 1 year
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