I see your point, but I don't agree.
While the complexity of tax filings may, as you say, motivate more intrusion by the IRS, I think other factors contribute much more significantly, particularly the magnitude of one's income. Targeting large income earners will yield more revenue for the effort needed to conduct the audits.
IRS intrusion could also be attributed to nefarious motives, e.g., political allegiance of the taxpayer, or targeting by political opponents, which have no relation to complexity of the tax form at all.
IETC fraud is a big problem. But, the IRS doesn't pursue it, IMO, because the taxpayers are at the lower end of the income scale, and because not pursuing it fits with the liberal/statist wealth redistribution agenda.
I don't think that "...IRS figures that each of us lies on our tax returns." Some people lie, others don't. The IRS just looks at the numbers and tries to maximize revenues.
I can't speak for all CPAs, but this one would be much happier with the FairTax.
I get a lot of pings from you about FairTax threads. Keep them coming. Do you do the ping list now? I thought it was Man50D at one time.
Thank you, foxfield, for your analysis of my thinking re: IRS intrusion.
Sorry for the delay in responding. I have had other priorities for the last couple of days.
I agree that one’s “liability” for an IRS audit is directly correlated to one’s income: the more money one earns, the more interest IRS has. IRS interest will, IMHO, significantly intensify when the Flat Tax and its paucity of supporting paperwork is put into play. I’d wager that you have actually strengthened my argument: many people whose income might cause IRS scrutiny provide supporting paperwork for their tax filing and avoid audits. Absent the supporting paperwork, IRS might have a lot more interest?
I also agree with the political motivations of the IRS, and, that reason alone is good and sufficient reason to replace the income tax with the FairTax and abolish the IRS.
The political aspect of the IRS not doing IETC “audits” also is grounds for FairTax, wouldn’t you say?
In my MBA program, we spent some time with MacGregor’s Theory “X” and Theory “Y,” which describe two contrasting models of workforce motivation. Without convening a seminar, a Theory “X” manager distrusts his subordinates and micromanages them with threats and coercion, whereas a Theory “Y” manager trusts his subordinates and leads them in positive ways.
I believe that the IRS (and many other government agencies, for that matter) is a Theory “X” organization, distrusting its “clients” (that would be us) and using all means at its disposal to intimidate them. IOW, IRS believes that we lie. I agree that IRS tries to maximize revenues, but look at the tactics they are required to use to do so? Flat Tax will, IMHO, make IRS a more abusive agency.
Most of the CPAs and Tax Attorneys I have talked to like FairTax. There are some holdouts, but that is because they feel that their livelihood would be threatened; they cannot see what is on the other side of “no income tax filings.” It is a “one mind at a time” process to win them over.
Man50D had to drop out, unfortunately. I still ping him, hoping to catch him “lurking” and that he’ll decide to join us again. So, by default, I am the keeper of the ping list.