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Guilty Until Proven Innocent (IRS shananigans)
NYT ^ | 1-20-06 | staff

Posted on 01/21/2006 6:28:05 PM PST by Rakkasan1

The taxpayer advocate at the Internal Revenue Service told Congress last week that since 2001, the I.R.S. has labeled as fraudulent the tax returns of 1.6 million people and has frozen their refunds without notice, although most appear to have done nothing wrong. Overwhelmingly, the taxpayers are poor and are simply applying for a break created for them.

(Excerpt) Read more at nytimes.com ...


TOPICS: Crime/Corruption; Government; News/Current Events
KEYWORDS: advocate; guilty; innocent; irs; taxation; taxpayer
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This week and last, stories broke all over the country about another injustice against the American people that is created by the income and payroll tax withholding. The IRS held back over 120,000 poor people's refunds without due process! The nation's Taxpayer Advocate, Nina Olson, says the IRS has been freezing tens of thousands of tax refunds that it considers questionable -- holding onto them without telling people that they're suspected of fraud.

Under the rules of the program, a taxpayer isn't told anything until six months after trying to find out what happened to the refund.

View here to learn more: http://www.fairtaxvolunteer.org/news/index.html

1 posted on 01/21/2006 6:28:07 PM PST by Rakkasan1
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To: Rakkasan1

And people still think this is a free country. The IRS is the American gestapo.


2 posted on 01/21/2006 6:29:45 PM PST by MichiganConservative (Government IS the problem.)
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To: MichiganConservative

And Congress is so addicted to other people's money that they are perfectly willing to just look the other way.


3 posted on 01/21/2006 6:31:24 PM PST by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: MichiganConservative

the last paragraph had to be included in order to prove it came from the NYT.
the IRS was crap before Bush was president and will be crap long after he's gone.(if the sheeple allow it to exist)


4 posted on 01/21/2006 6:35:36 PM PST by Rakkasan1 (Peace de Resistance! Viva la Paper towels!)
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To: Rakkasan1
Right.

Tax policy during the Bush years has greatly favored rich taxpayers at the ultimate expense of the poor.

What a load. The "rich" are the ones who pay the taxes. What, would liberals melt if they were honest about things?

5 posted on 01/21/2006 6:39:12 PM PST by MichiganConservative (Government IS the problem.)
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To: Rakkasan1
the last paragraph had to be included in order to prove it came from the NYT. the IRS was crap before Bush was president and will be crap long after he's gone.(if the sheeple allow it to exist)

My first take when I saw the headline and the link was - "Oh here comes another NYT story to bash BUSH". I believe just like you - income tax is bad law ans should be replaced by some tax collection scheme far more equitable. Why are we using the Federal Income tax as a means of giving CASH to low income earners who never pay Fed Income taxes? This is nothing more than an income redistribution scheme hidden from view. Remember when the Bush tax refunds were doled out? The poor had to get something even though they pay no Fed income taxes. Scrap the whole thing and go with a national sales tax. This would punish the consumers and reward the savers, who are the source of financing for capitalism.

6 posted on 01/21/2006 6:42:21 PM PST by p23185 (Why isn't attempting to take down a sitting Pres & his Admin considered Sedition?)
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To: Rakkasan1
The advocate, Nina Olson, had her office analyze a representative sample of 500 of the 28,000 frozen refunds. It turned out that 66 percent of the returns deserved the full refund, and 14 percent deserved a partial refund. The analysis also found that the median income of these taxpayers was $13,300 and the median refund was $3,519, which reflects a tax break aimed at the poor that's called the earned-income tax credit. These taxpayers typically waited eight and a half months for refunds that were, on average, about a quarter of their annual incomes.

Not a "refund" but a giveaway.

even by her own account, something was wrong with 34% of the 500 random sample returns. (which may or may not be an acurrate representation of the total)

no mention of how many returns were frozen because of past shenanigans.

tip of the iceberg.

what's her point again ?
7 posted on 01/21/2006 6:43:13 PM PST by stylin19a (God does not apply to your alloted time, the hours spent playing golf.)
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To: Rakkasan1
Having a hard time working up any sympathy for people who are waiting for "refunds" on taxes they never paid to begin with.

Especially since right now I am filling out my tax forms and contemplating the thousands upon thousands I am paying.... and not even a little "refund".

8 posted on 01/21/2006 6:46:26 PM PST by Graybeard58 (Remember and pray for Sgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Graybeard58

Just think of them as "less fortunate" as in you are very "fortunate" to have worked hard and made a living for yourself .


9 posted on 01/21/2006 6:49:33 PM PST by MichiganConservative (Government IS the problem.)
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To: stylin19a

Howmany were claiming the "slavery reparations" refund?

How many were fudging dependents to boost refund levels?

Howmany were claiming bogus losses?

So many questions...so few answers via the NYT


10 posted on 01/21/2006 7:02:57 PM PST by plangent
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To: MichiganConservative
I've made good money and got hammered in taxes.

Then I've made next to nothing and was eligible for EITC, which was embarrasing.

I much preferred the first situation.
11 posted on 01/21/2006 7:06:37 PM PST by motzman (God helps those who help themselves - B. Franklin)
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To: Rakkasan1
I would really like to see the specifics on some of these cases. Could be some where the husband and wife split the kids, file seperately-head of household, and get an earned income credit double dip.
12 posted on 01/21/2006 7:20:19 PM PST by SouthTexas (2006 will be a very good year.)
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To: Rakkasan1

The IRS loves to pick on people too poor to defend themselves.

They will frequently break the law and keep your money or deny a deduction just to see if you will go to court to fight them.

And congress is perfectly happy to see you repressed by these thugs.


13 posted on 01/21/2006 7:20:51 PM PST by Pylot
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To: p23185
This would punish the consumers and reward the savers, who are the source of financing for capitalism.

LOL! As if corporate profit, from the sole proprietorship to the the multinational conglomerate were not the fuel which drives the engine of growth.

Without spending (people buying the product) there is no company to invest in, it goes belly up!

14 posted on 01/21/2006 7:25:23 PM PST by Smokin' Joe (How often God must weep at humans' folly.)
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To: MichiganConservative
And people still think this is a free country. The IRS is the American gestapo.

Ever heard of child services? They're equally unconstitutional.

15 posted on 01/21/2006 7:27:08 PM PST by SeƱor Zorro ("The ability to speak does not make you intelligent"--Qui-Gon Jinn)
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To: Smokin' Joe
Without spending (people buying the product) there is no company to invest in, it goes belly up!

I wasn't very clear - a national sales tax would be more fair since poor people do not have as much to spend on consumables as richer people do - the share of tax would be fair. Profits do sustain a company and provide for further investment and R&D, but before profits a new start up must get financing somewhere which is usually by tapping savings via bonds, stocks, loans, etc. Perhaps a flat tax would work, but I think that would not be as fair as a national sales tax. I don't think this would cause people to stop spending because they would no longer owe the IRS thousands of dollars annually therefore they can afford the same product at a higher price to cover the tax.

16 posted on 01/21/2006 7:37:12 PM PST by p23185 (Why isn't attempting to take down a sitting Pres & his Admin considered Sedition?)
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To: p23185
I don't think this would cause people to stop spending because they would no longer owe the IRS thousands of dollars annually therefore they can afford the same product at a higher price to cover the tax.

Finally! Someone who admits that things would cost more with the tax. Thank You!

This debate has been marred from the onset by people assuming that somehow we would get our entire pre-tax paycheck and pay less at the register, too. That stunes my beeber, if you catch my drift.

Anyone who has ever been shopping in Canada has run afoul of the provincial tax, the GST, and the VAT, which can nearly double the price paid for an item by the time you get it out the door.

There is another factor, though, that being that after the elimination of the negative income tax (the EIC), wages will have to increase to make up the difference, or the working poor will not make it. The same people who pay the bulk of the taxes now will end up paying just as much, imo, just in a different way.

17 posted on 01/21/2006 7:55:29 PM PST by Smokin' Joe (How often God must weep at humans' folly.)
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To: Pylot

In a just world, the people who work at the IRS wouldn't be government employees (because there would be NO IRS). They'd be employed picking green beans by hand in the hot sun day after day. And most congressmen would be behind bars.


18 posted on 01/21/2006 7:55:41 PM PST by MichiganConservative (Government IS the problem.)
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To: Smokin' Joe

Things would be better for us if Congress limited spending to constitutional spending and unconstitutional federal bureaucracies were abolished. But what are we slaves gonna do about it? Most of the slaves are happy on the big government plantation.


19 posted on 01/21/2006 7:58:39 PM PST by MichiganConservative (Government IS the problem.)
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To: MichiganConservative
Things would be better for us if Congress limited spending to constitutional spending and unconstitutional federal bureaucracies were abolished.

I wholeheartedly agree.

It seems that few survive 6 months inside the beltway before they are in the pork barrel, too.

One of the reasons I like Mike Pence in '08 is that he has demonstrated the ability to at least trim the pork.

Can you imagine the Fed employees union rioting, though?

I'd also like to see bills limited to one topic (no omnibus acts with a couple dozen unrelated amendments and riders), and be able to believe that the people voting on them had actually read (and understood) them.

I'm not holding my breath, though.

I'd also like to see every congressman and senator have to pass a test on the Constitution, just to prove they knew what they were swearing to uphold and defend. I'd bet the majority would flunk.

20 posted on 01/21/2006 8:09:35 PM PST by Smokin' Joe (How often God must weep at humans' folly.)
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