they were specifically hired to target the more advanced tax cheat schemes and are generating exponentially more income than they cost. anybody saying anything different is spreading misinformation at best or intentionally lying to support a position that has no support. these are simple numbers but as the article you quoted and some cheer shows, numbers can be misleading if people don't understand what they actually mean
because that is where 90% of the returns are. Come on man. thought you were better than this. chances of being audited go up significantly the more you make
I thought the IRS agents were going to be cross-trainer into Border Patrol agents Donald Trump issues major threat to nearly 90,000 IRS agents
First let's be clear, that is what the Biden Admin said they were going to hire them for. There is nothing in the law that said those agents are dedicated and must be used for higher net worth individuals. Even if there were, the next Admin could come in, change the law, or their interruption of the law, and then use them for whatever they want. Second, the idea that these audits would generate "exponentially more income" than the cost is an assumption, not a fact. If these new agents did actually do what the Biden Admin promised, then it would be like nitro to Tax Lawyers, CPA's, and former IRS agents industry to set up specialized shops to offer high net worth clients to fight the IRS tooth and nail during an audit. Their goal would be to drag the audit out as long as possible by slow rolling them at every single turn. All of these folks make significantly more than the IRS agents and can run circles around them since they know how the system is set up and worked in it for years. And high net worth individuals will pay it because these firms have a track record to show their clients and they will want to send a message to the IRS that they are not an easy mark. These audits are going to take so long and be so difficult that the IRS leadership is eventually going to realize that they are not "generating exponentially more income" from enough of these audits and will return to the mean of where they are now, which means more middle class people will end up getting audited. Third, in the event the IRS gets a really good audit agent and is able to beat the team the high net worth individual hire a couple times, how long do you think that person stays with the IRS making $150k? Especially when the private sector firms will offer to pay them double or triple that if they come to work for them? Maybe a year or two? So now you have to go back through the federal hiring process that can take anywhere between two to six months. I have a family member that works at a firm that deals with IRS back taxes, they have a couple people on their team that the IRS has tired to hire away from him since they are so good but the IRS could not get even remotely close to their current base salary.
And that is the 90% of the population that cannot afford to hire lawyers, CPAs, and former IRS agents.
you really haven't been following this have you? your information is consistently incorrect..I'll gree that djt can assign them to do whatever he wants and you can be certain that they will no longer focus on his friends anymore. can you say weaponization? djt could turn these agents lose on all the SSI cheats, that should go over well in the deep red states that love them some SSI. maybe all those farmers using illegal labor or claiming crop subsidies. go after them, that will make maga happy maybe I'm wrong, but I doubt those agents cost anywhere near $1B IRS tops $1 billion in past-due taxes collected from millionaires; compliance efforts continue involving high-wealth groups, corporations, partnerships | Internal Revenue Service IR-2024-185, July 11, 2024 WASHINGTON — As part of continuing compliance efforts under the Inflation Reduction Act, the Internal Revenue Service today announced the agency has surpassed the $1 billion mark in collections from high-wealth taxpayers with past-due taxes. As part of larger efforts taking place, the IRS has stepped up activity specifically on 1,600 individuals whose incomes were more than $1 million per year and who each owed the IRS more than $250,000 in recognized tax debt. Since last fall, this IRS compliance effort has generated more than $1 billion in collections from this group, with work continuing in this area. “With this collection activity, the IRS passed an important milestone in our effort to improve compliance and ensure fairness in the tax system,” said IRS Commissioner Danny Werfel. “Our increased work in this area means these past-due tax bills from high-end taxpayers are no longer being left on the table, like they were too often in the past.” “Years of funding declines meant the IRS couldn’t get to money that we knew was owed, but we simply didn’t have the resources or staffing to collect,” Werfel added. “Funding from the Inflation Reduction Act is reversing a decade-long decline in our compliance work, including increasing our compliance work involving the wealthiest individuals and groups with tax issues. The collection results achieved in less than a year reveal the magnitude of what can be achieved over the long run as our Inflation Reduction enforcement continues to ramp up in the months ahead.”
Whatever number they audit doesnt matter. You will simply use any number not zero as your level for no reason than to align with right wing dogma. So you tell me. If you are 4Xs less likely to be audited in the middle class as someone making $500k... what is the number? Based on your numbers... 20% of their effort is on the top 0.5% of filers. 47% of their effort is on the top 6% of filers.
Although it's counter-intuitive it's actually more cost-effective for an under-staffed IRS to target smaller taxpayers with questionable returns for audits than to target large taxpayers who are utilizing complex tax avoidance schemes. It takes much more time and manpower to target a taxpayer who is represented by an army of accountants and attorneys than it does to audit a taxpayer with a simpler return. While I do not know whether it's still the case taxpayers claiming the earned income tax credit (EITC) were among the most likely category to be audited even though they were also among the lowest income taxpayers. Because the criteria for claiming the EITC are very specific it's also easy to target taxpayers who fail to meet that criteria even if the errors in their returns are due to an oversight rather than an intent to evade taxes that are lawfully due or to receive a credit that to which they may not be entitled. Errors by EITC recipients are easy to detect by computer and can be handled by mail rather than through in-person audits. How do IRS audits affect low-income families? As I mentioned in multiple previous posts the CBO has estimated that for each dollar spent on IRS staffing the return to the government is six dollars. The reality is that Republicans are much more concerned with protecting their high income campaign donors than they are with deficit reduction.
which has absolutely zero to do with why the % are what they are. if everyone at the shooting was hispanic, there is 100% chance the shooter was Hispanic, not because 100% of Hispanics are shooters.
Given that the IRS will be able to devote more manpower to complex returns my guess is that the Service will focus more on very high income taxpayers. Not really going to happen given that Donald and the Congressional Republicans will significantly decrease the number of new hires it's not going to happen. While the government may not see the return on investment through the new hires the wealthy Republican donors will definitely see a return on investment either through fewer audits or an IRS willing to settle audits for pennies on the dollar rather than willing to contest complex questionable returns.
A much better question is why is our system so hard to figure out? Why do I need a professional accountant to figure out what I owe the federal government? Less complexity leads to less cheating and less mistakes. A promise from Trump in 2015 that went unfulfilled. Didnt even try. Donald Trump promises to simplify US tax code – video | Donald Trump | The Guardian
I find it funny when people believe you can trust a government agency press release but not trust a private sector company press release.
Thank you for proving my point about why lower income folks are more cost effective for IRS audits. The issues with the CBO assumption is that is assumes that 1 to 6 ratio across all tax payers. The question is whether ratio would hold up when going after high network individuals. If it takes 1 auditor 6 months to get an additional $100k out of a $1M earner versus 3 months to get $20k out of 6 individuals making $175k, how long will the IRS keep leaving money on the table by going after the higher net worth individuals?
If Trump can invade Greenland on a whim, I'm guessing that firing a few public sector employees will not be a problem. He's already got the top court stacked in his favor, and the legislature groveling at his feet. Welcome to the new Dictatorship of America (DOA). You can say that democracy in the U.S. is DOA.
yeah, the IRS is highly partisan and publishing false numbers. are you really serious with that nonsense?
