I claim no special knowledge of tax fraud, but I think that if a flat tax were
adopted tomorrow, the effort by lobbyists to make changes in the system to aid
wealthy taxpayers in their quest to pay as little tax as possible would begin
the same day.
Remember when Republicans told us that raising income taxes on the rich would
only bring in $700B over a decade, which didn't mean very much in terms of
the federal budget? It's funny how ideology shapes headlines.
"Income tax" used to be used to fund essential government programs. Now
it is nothing more than confiscation of earnings from people who work and
transfer of their wealth to people who do not work, or in worse cases like this
transfer it to outright criminals!Several solutions:End
"refundable" tax credits entirely, period.Throw crooks in jail.Have IRS agents investigate actual fraud cases, not working to find excuses
about how to delay tax exempt status for conservative groups.Enforce our
immigration laws, to end fraudulant "refunds" to people who did not pay
taxes, or who claim multiple non-existent children and get checks sent to a
Solution = Set your number of deductions so you don't get a refund from the
IRS at the end of the year.
Why is Florida the hub for medicare and tax refund fraud? Two
things we could do to help combat/reduce this type of fraud:Rather
than cutting the IRS budget, we need to make sure they have the employees and
tools necessary to combat fraud. The IRS needs to verify the
employer's W2 sent with the tax return BEFORE issuing the refund. re:rvalens2No matter the tax system, there will be people
committing fraud and a need for people to collect/enforce the tax system.
At the risk of sounding politically incorrect - I'll say what most people
already KNOW. Most of the identity fraud is being perpetrated by illegal
trespassers.Going further - I know (through personal contacts)that
MANY illegal trespassers file tax returns with bogus, or stolen SS #'s
claiming EIC (earned income credits),get a "refund" check sent to them,
- then move to a new address. Most likely starting the same stuff all over
One quick way to kill the fraud ... go to a flat tax/fair tax system.With Americans no longer having to file, the fraudulent refunds wouldn't
happen. It would also do away with the IRS. Any still necessary IRS functions,
could then be absorbed by the Treasury Department.Eliminate the
fraud, do away with the IRS and go to a tax system that is completely above
board. What could be better?
Under current law, taxpayers can receive refunds for thousands more than they
have paid in - an open invitation for fraud. If IRS/Congress would make all tax
credits non-refundable, it would eliminate most of the fraud. You could use
credits to reduce or eliminate your tax liability, but not less than -0-. If a
taxpayer could not get back more than they actually paid in through withholding
or estimated payments, the fraudsters would have to devise a new game plan.
How is the IRS supposed to catch these guys when they are spending all their
time investigating tea party and other conservative groups?
The IRS by law is suppose to report unauthorized use of a social security number
to the numbers owner. But unless your name is Eric Holder, they have not been
doing this under the Obama administration.
Folks, this is chump change compared with what we will see in future Obamacare