Posted on 01/08/2023 6:04:25 PM PST by SeekAndFind
Poor taxpayers cant afford lawyers.
The problem that many people seem to fail to understand is that the IRS operates under a you have to prove yourself innocent rule. The IRS can take your money and they do not have to prove a thing.
It is harder for those poor overworked civil servant to do that to rich people because they have lawyers and congress critters in their back pocket.
We never take EIC but we are a small business and yes we have been audited more then once. I am very dedicated to having paper receipts for everything.
Buffett runs his mouth about the rich paying more. Knowing that 70,000+ pages protect him.
He’s made a living fighting the IRS to avoid taxes
https://meaww.com/pro-publica-irs-leaks-warren-buffett-slammed-for-not-paying-taxes
https://www.accountingtoday.com/news/buffetts-netjets-beats-irs-on-366mn-claim
There was another one where he and his lawyers fought the IRS for years. Owed millions. Legit millions. Finally won and the whole time able to write off legal expenses.
They love going after the folks that can’t defend themselves. No different than the DOJ and it’s 97% Conviction rate.
Ping
im ok with EIC audits
lot of fraud there
Yikes! But how much money can they get from low income people?
I predicted this a while ago. Looking for the underground income where a persons standard of living doesn’t match their income stream.
The goal is intimidating people. They simply start with the most defenseless and work up to the more comfortable middle class. The feds create all the money they want. Taxes are irrelevant to spending.
Food. Gotta teach the poor they need to pay their fair share. And besides, that’s where the money is.
Honestly though, these are the people who work and don’t claim it but do claim 6 kids and stock losses and $150k in child care and...
IIRC, somewhere around 25-30% of EITC returns are fraudulent. An ex-DIL did that. Claimed both kids lived with her during an entire year when they were living in another state. Had to pay it back and got a minor slap on the wrist.
I did tax returns for a few years. Had people trying to claim all sorts of people as qualifying kids. One friend discovered a woman with 9 kids. She filed for the EITC on three of them (maxing it out) and ‘loaned’ the other 6 out to other families in return for half of the EITC refund.
Very high fraud. Same with the additional child tax credit.
The current operation makes sense. The difference in the amount of tax requirement between each end of the system is very simple.
The top 1 percent of taxpayers (AGI of $546,434 and above) paid the highest effective income tax rate of 25.6 percent—more than seven times the rate faced by the bottom 50 percent of taxpayers. So Uncle Sugar is getting their booty from the top end at an incredible rate because they have the money to pay it. The bottom end of the scale doesn’t have to money especially with the increased inflation rate so it looks like they are always in the loop. It’s a simple formula, the rich have the money and the poor do not. And they make less worth than they did so the media blames the rich for not giving it away to them.
Sells papers
wy69
Back in the 60s, they audited my late father in law 3 years in a row. Each time, they found small errors in THEIIR favor, and had to give him a refund.
Never audited him again, the rest of his life.
The poor are chased down because they can crash the system. The wealthy don’t directly pay income taxes and there aren’t enough middle class to crash the system, especially since most will do it right because they have too much at stake.
The reason is it’s easy to identify who is qualified for earned income. It’s a quick audit and a letter saying you owe back taxes. Very simple. I personally don’t think there should be earned income credit at all.
At least not refunding more than they had withheld. There’s a sweet spot in the tables where EITC gives thousands more than they paid in.
Nothing in the codes dictate giving an IRS auditor a comfy chair in my kitchen. My audit will be miles away from any living human, in the woods. I’m betting I can run faster than an auditor.
“low-income wage-earners taking the earned income tax credit,”
These folks are usually illegal immigrants.
EIC allows you to get back more from the gov than taxes you actually paid, especially when you claim you have 20 or so dependents in mexico you’re taking care of.
The more kids, the more you get in credit.
Correct and with the EIC they can get a refund even if they do not owe taxes.
Start with members of Congress.
The rich give money to the politicians and in return are spared the treatment given to the ordinary folk.
The harassment of the poor people serves to teach them their place in society: at the bottom and who their true masters are.
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