posted on April 12, 2001 07:38:22 AM
IRS Tax Commissioner Charles Rossotti warned taxpayers yesterday not to be tempted to cheat on their taxes due to falling audit rates.
Sounds like posturing to me. Their computer system is so old it's from the dinosaur age. The IRS has not been able to upgrade their computer system that keeps track of your tax info, my tax info, everyone's tax info. Their computer systems modernization plan has been, well, a failure since they never have modernized.
The IRS has to rely on publicity and threat's of "We'll catch you so don't cheat" because they haven't got the manpower or the computers to truly manage the data they've got.
Last year the percentage of audited tax returns was less than 1/2 of one percent, much lower than it used to be in the 80's. Rossotti blamed it on tight IRS budgets during the last five years and lack of money to replace antiquated IRS computers.
Apparently they rely on snitches too, since their computer systems can't do the job. This is a quote from Rossotti: "You'd be surprised how many people tell us about other people who don't fill out accurate returns."
Don't you just love tax season? I don't cheat on my taxes anyway so what me, I don't worry.
posted on April 12, 2001 08:28:39 AM
You only have to worry if you have a legitimate but unusual deductible that causes a red flag! We were audited years ago for deducting the cost of training which was not only job related but without it there would have been no job. What a bunch of crap
they tried to give us...we had to get letters from the job (even though we had a form letter describing the type of training required for the higher paying position.) and to top it off my husband also had to get another letter from his immediate superior on company letter head saying that the training resulted in his qualifying for the job he held.....yeuch dbl trbl!
posted on April 12, 2001 09:06:28 AM
I don't cheat on my taxes but that does not mean I am not afraid of them. They have their head jammed so far out of sight they don't have any clue what their own rules are. You can be in plenty of trouble with them just because some jerk has spent a certain number of hours on your case and he would look bad not to get something for them out of it. The only safe ones are those that has pre-paid all their lawyers on retainer and know they have all the high poered help they need. Or like Mark Rich that can move to Switzerland and tell them to take a flying leap. You didn't see anyone arresting that "fugitive" to send him back. Anyone who tried would have meet those large dark gentlemen that always are in the background when he is shown. It would be worth your life to try.
