A relative (accounting graduate) found seasonal work for several years with a
national tax preparation company. She was appalled at the people who appeared
on the tax prep doorstep on January 2 each year with documentation in hand,
wanting help to apply for earned income credit and other freebies. They asked
her to submit tax returns on the basis of questionable and fraudulent documents.
They wanted the tax prep company to submit for them because the money would
come back more quickly :) She questioned them on the document sources, etc and
then stated she could help them but would have to report them. They got mad and
belligerent and lectured her on the tax laws and their rights and blah blah
blah; and they apparently found someone else with less scruples to help them.
This is the type of fraud that the IRS is attempting to thwart.
Unfortunately some law-abiding citizens get "hurt" in the process. Also
unfortunate that some people spend a great deal of time AND energy trying to
cheat when they could put their brains to work doing something useful and
Refundable tax credits are the problem. The example in the article shows why.
The family shouldn't get more in refunds than they paid in. Now they paid
in $500 and get back $1000. Doesn't make sense. A refund is just
that...get your money back...not get more money back.
fullypresent...I know the liberal party line is that the rich don't pay
their fair share. Well, they provide the employment, housing, financial risk,
and just about everything else to keep things going. When I was single I paid
far more income tax than my married brother with 4 children, both state and
federal. And if there are tax incentives, say to build apartments, why do you
think they were put in place? Without them, who would want to build apartments,
without which all these people would have no place to live. I'll tell you
something---poor people don't pay any income tax either, so why aren't
you railing on them to pay "their fare share?" Or don't they need
to contribute, just take?When I was in business I frequently paid
some of my employees more than I was paid, and I owned the company. What was
the drag on it? Taxes, required insurances, workers compensation, etc which
were all just money pits. I guess we were paying so that the poor could
complain that we weren't paying our fair share, although we barely eeked
out a living, going from 6 employees to 1.5 thanks to Obama's policies.
toosmartforyou - Kaysville, UTIt is due to all the fraud poor people are
committing with these tax refund programs. No one should get refunds that do not
pay any taxes or get a refund that is higher than what they have paid in taxes.
Next they need to go after the rich who do not pay their fair share of taxes.
Also, get rid of the law that allowed Trump as a billionaire to not pay any
federal taxes for the past 20 yrs. If they could stop all the tax fraud out
there and could probably wipe out half of the deficit. It would be worth the
cost of accountants and enforcers to do that.
This must be Obama's way to reduce the deficit. It is interesting that he
was OK spending trillions of dollars for economics programs that didn't
work (Shovel-ready jobs; Obamacare) while now hitting poor persons that qualify
for the refund. I guess that's part of his "legacy" isn't it?
This is long overdue. The billions of dollars lost through fraud by sending
"refund" checks to people who paid nothing in taxes is shameful.
Sending the money to people who are not even eligible is even worse!The IRS should be working as hard to crack down on this type of tax fraud as
they are on auditing actual taxpayers who are cheating.
This is truly an evil organization.