Why would anyone believe the IRS should be trusted with vast new snooping powers?
Most of the media, along with other Democrats, are campaigning to give the IRS huge amounts of additional money for their budget so that they can pretend to pay for the two huge slush funds they are peddling for the tax agency.
They want banks to report the receipts and disbursements on any bank accounts where the annual deposit amount is more than $10,000.
Catherine Rampell of the Washington Post says Republicans are opposing this provision to massively intrude on the privacy of the public only because they support tax cheats.
Somehow, banks are supposedly able to sort the accounts to exclude wage income and other exempt income, plus sort out the teachers and firefighers, who will oddly be exempt from the measure, from the massive data dump of the banking system at the flick of a switch. That implies that the computer can determine those sources in their data dump. It must be magic!
Only accounts with flows of more than $10,000 not tied to wage income or exempted benefits would be affected
In reality, most people don't cheat on their taxes, at least not with their checking accounts.
Here is a hypothetical example of what an actual tax cheat might look like:
Let's say there are two Republicans, a father and a son. The father has been a powerful political figure for fifty years. For convenience purposes, I will call the father "Joe" and the son "Hunter." Hunter, for most of his life, has received massive amounts of money from foreign sources due to his last name and his father's position of power. He essentially got board fees and other fees despite having no experience in whatever board he was placed on and despite not having to show up to meetings.
It appears that Hunter had some of these deposits end up in a joint account he shared with Joe.
I am sure that if the IRS were aware of this situation, they would analyze Hunter's personal tax returns to make sure all income from foreign and domestic sources was properly reported and the correct taxes were paid.
The agent would also analyze the joint account to make sure there was a gift tax return filed to report the amount that was diverted to Joe for his use. If the gift tax return was not properly filed, they could go back as far as they wanted to collect the gift taxes, interest, and penalties. There is no statute of limitation if the return was intentionally not filed. The tax rate on gifts can be as high as 40%, the same as estate taxes.
The IRS might also analyze Joe's return to see if he structured his personal tax situation to intentionally avoid more than $500,000 in Medicare taxes instead of for some legitimate purpose.
I am sure that journalists throughout the country and on the nightly news would jump all over this story if they were aware of it. They could win awards for uncovering this tax cheating story. Woodward and Bernstein could thrive on reporting a story like this. They wouldn't have to resort to writing fake stories like Russian collusion.
Politicians like Adam Schiff, Nancy Pelosi, Jerry Nadler, and others could have endless investigations and hearings to report how corrupt this hypothetical Republican Joe is. They might even draw up impeachment articles, especially since so much money came from staunch foreign adversaries.
The "independent" Justice Department would certainly investigate this situation thoroughly. They might go to the FISA court to spy on Joe, Hunter, and their associates because colluding with a foreign country to get massive amounts of money is certainly dangerous.
Why would anyone trust that the IRS would be unbiased and objective in picking the audit targets, since we know that the politicized IRS targeted political opponents and violated their free speech and freedom of association rights? Lois Lerner not only illegally targeted people, but (along with others) destroyed computers and hid documents. Lerner even committed perjury before Congress. Yet the "politized" Justice Department didn't care about the obstruction of justice and perjury. Lerner was above the law and collects her generous pension and benefits that the rest of us have to pay.
Why would the public trust the money and additional information in the hands of the IRS when someone was willing to leak private tax information of the rich to the media? Somehow, the compliant media widely reported the illegally leaked information as they campaign for higher tax rates.
Why would anyone believe that the IRS would somehow be able to objectively analyze the massive data dump since they are so inefficient at administering the tax code today?
Jack Hellner is a CPA with significant experience in tax matters.
Image: Pixabay, Pixabay License.
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