More IRS News….
IRS announces that, starting July 15, it will begin examining hundreds of high-income individuals and private foundations. In my reading of this news I was unable to see how they will be defining “high-income individuals”. Why are these two (individuals and private foundations) in the same sentence? Well, the IRS is of the opinion that there is an important link between the two as most high-income individuals are involved with one or more private foundations. More particular, the IRS believes that there could be what they call “prohibited transactions” between them! Oh, heavens.
In addition, another tax agency (TIGTA) stated that they believe there is likely over $46 billion to collect in back taxes from these high-income individuals.
Most of you know that audit rates have been particularly low in the last decade. That can’t last….no way. I am not advocating a rise in audits!! Nope. But history has proven that when audits decrease, tax cheating increases. There’s an amazing correlation there!
I have NO empathy or sympathy for those who cheat on their taxes. The “tax gap” in this country is gigantic. The “tax gap” is the amount of taxes that should have been paid but haven’t been paid. Currently, the “tax gap” is around $400 billion. Seriously. That is incredible. Now, obviously, not all of that is from “cheaters”. But, nevertheless, a large portion is.
And, never forget, that a portion of the high taxes you pay are only because of that “tax gap”. So, you and I are subsidizing the cheaters. That doesn’t sit well with me. So, my zero tolerance stance is, in my humble opinion, very well justified.
There are some serious rumblings about this new round of tax relief about to be loosed on us. Once the “kids” finish fighting over it we will be able to read it and learn it. How hard could it be???!!!