Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If they managed to hasten the processing of tax returns with their newfound growth, that would be a step in the right direction. Starting in 2020 with Covid, the system got so bogged down and backlogged, there are people whose 2021 returns haven't been processed.
The IRS has been understaffed for years, it's about time the agency got the staff they need.
FY 2021, the IRS employed about 81,600 employees, including 10,530 temporary and seasonal staff.
This Tax & Spend Bill just doubled that employee count.
Quote:
Originally Posted by TMSRetired
Increased automation usually leads to less jobs not more
Problem is — the IRS is not automated. Old computer systems and people who will fight tooth and nail to keep their unautomated jobs.
Quote:
Originally Posted by Annandale_Man
The government should just ban paper returns and require everyone to file electronically. Computers can do all the work and kick out the questionable ones for audit.
I send a paper return AND a big check every year. I have no interest in attaching the IRS to any of my bank accounts. IF they ever mandate electronic returns, I’ll just open another account devoted to IRS and nothing else. Doubtful they will do that — what about all the people who don’t have computers? People who don’t even have an Internet connection?
First they lowered the reporting threshold with the rescue america act, now Their new super sized irs is coming after the small fish. Yes, this new bill will directly affect the little people the most no doubt. https://www.finance.senate.gov/ranki...supersized-irs
The 'tax gap' is rooted in the self employed - almost all of which is in the middle class.
Reality is contractors, who can and do work cash basis, dont always write it down. Across 335M people, uncle sams cut adds up.
The mission statement for the IRS is fair application of the tax code to all taxpayers.
I know no one is a fan, but when you do side work for $950 to lay in bricks and they pay you in cash...does it get added to your schedule C?
I have sales as little as 10 cents that go on mine, make deals in the parking lot all the time...
Problem is — the IRS is not automated. Old computer systems and people who will fight tooth and nail to keep their unautomated jobs.
actually its almost all automated, EXCEPT for the part where people send in paper returns and processing agents at offices all over the country have to enter it manually. These people (oft seasonal) are in short supply.
once its in the system it is checked against all sort of databases and records and decided if it needs a human to look at it. These people are in short supply. And if malfeasance is discovered, investigative agents are in short supply.
and all these people fighting for jobs....are retiring or have retired. Trump put in a 3:1 rule 3 have to leave before 1 can be hired. some agencies are particularly nailed, especially those with CSRS employees still
actually its almost all automated, EXCEPT for the part where people send in paper returns and processing agents at offices all over the country have to enter it manually. These people (oft seasonal) are in short supply.
once its in the system it is checked against all sort of databases and records and decided if it needs a human to look at it. These people are in short supply. And if malfeasance is discovered, investigative agents are in short supply.
and all these people fighting for jobs....are retiring or have retired. Trump put in a 3:1 rule 3 have to leave before 1 can be hired. some agencies are particularly nailed, especially those with CSRS employees still
Too bad all those “automated data bases” couldn’t figure out the BILLIONS of Taxpayer Dollars that were stolen with the so called Covid Relief Trillions in spending.
Let me make sure I have this straight. I've been hearing for years about how unfair it is that lower income people don't pay their share of income taxes.
Now the same people who have been adamant about that stance are suddenly so concerned about how unfair increased IRS audits will be to low income people.
What a wonderful change of heart!!
Low income people on public assistance or really low paying jobs won't be affected by this. Its the mid 5 figure to low 6 figure people who might have a more complicated tax filing that very low income people and will be subject to the IRS looking at them. Wealthy people have tax lawyers and well paid accountants who will shield them from any trouble.
I understand the concern about over reach but this isn't about over reach -- it's about just operating within the tax laws as they exist now.
I know you all think the IRS has tons of staff. I know someone who works with the IRS in an upper level position. He says they don't have enough staff to do the work that needs to get done. They never can pursue people they know are cheating because they are so far behind on similar cases and day to day.
I'm not worried. I pay my taxes as required within the law. And even if there are 'grey areas' -- wink, wink......pffft they aren't going to question me. They want the tycoon who claimed 7 million dollars worth of losses as he bought another 10 million dollar home. They don't have the staff to verify those losses -- and yes they should verify those losses.
i appreciate you trying to understand why people are concerned. in an alternative universe, the Republicans passed a bill adding 80,000 roving, armed ice agents. if you aren’t here illegally, you shouldn’t have anything to worry about.
I have friends who are small business owners. In one case, the owner is the sole employee. He nets well over $200K per year. He already pays more taxes than the majority of Americans, as I suspect many small business owners do. Of course, this is just people I know. Do you have statistics showing that most small business owners don't pay taxes currently?
I have owned a profitable B2B corp for 20 yrs doing biz throughout the U.S. & Canada. I talk w/ other biz owners often...they're my clients.
I don't know 1 business owner who does his/her own taxes. We nearly ALL hire CPA's, because its so complex. Most have bookkeeping services using quikbooks, or in-house accounting staff using quikbooks.
Very few CPA's would risk losing his/her practice, & license, by filing an improper return. Bookkeeping services are also certified.
Are there some tax-cheat biz-owners & CPA's...yep. I'm betting not as many as you could find in DC, conected to our federal gov't beaucracy.
If the IRS just audited corps who are completing their own tax returns, they'd be much more likely to find cheats, than to audit those using CPA's.
If I asked my Bookkeeping service or CPA to do anything that even smelled like tax fraud, they'd drop me immediately. I've had both for 15+ yrs.
I understand the concern about over reach but this isn't about over reach -- it's about just operating within the tax laws as they exist now.
I know you all think the IRS has tons of staff. I know someone who works with the IRS in an upper level position. He says they don't have enough staff to do the work that needs to get done. They never can pursue people they know are cheating because they are so far behind on similar cases and day to day.
I'm not worried. I pay my taxes as required within the law. And even if there are 'grey areas' -- wink, wink......pffft they aren't going to question me. They want the tycoon who claimed 7 million dollars worth of losses as he bought another 10 million dollar home. They don't have the staff to verify those losses -- and yes they should verify those losses.
Reporting today indicates that IRS data indicates that somewhere around half of audits are and will be of families making less than 75k per year.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
