Posted: April 15th, 2011 by Militant Libertarian
Mili Note: This is from a website that has been around for a while, but lain dormant for half a year. I’ve been brought in as a features writer and collaborator, mostly to discuss prepper subjects like gardening, food storage, fiat-proof investment strategies, and the like. If any of you are interested in having something published over there, send me an email.
The Internal Revenue Service (IRS, aka Infernal Robbery Specialists) have a new tool to combat tax thieves: they’re going to predict who they’ll be and stop them before it happens. They’re calling it the “look forward model” of tax collection.
Here’s how it works: employers and other entities who file forms such as W2, 1099, etc. on taxpayers will be required to submit them within a shorter time window of collection (say 60 days). These will be electronically received, as most of them are now, and filed into the taxpayer’s entry into the IRS database. Using this data, the computer can predict the expected tax return of the filer before the return is even filed.
If, when the actual return is sent in, it doesn’t match what the IRS computer expects, it will be instantly rejected for audit.
Sound great? Nicely streamlined? A beautiful system for more quickly assessing data and handling the millions of returns the IRS receives every year?
Sure it does.. if you’re a tax collector. If you’re an individual whose financial situation changes for any reason during the year? Sounds like a nightmare because that change will become an excuse for audit. Nobody likes an audit and anyone who’s been through one knows that they’re nothing but a bureaucratic hoop-jump with only one likely outcome: you’ll pay more – either in taxes, fees, or to a lawyer.
Here’s an example of how this system would screw with Joe Middle Class:
You’re working at your normal job and making ends meet. You have a little extra and decide to invest it in your neighbor’s startup business he’s beginning out of his garage. You don’t expect to make any money from your investment this year, of course, because the business is new. But once it takes off, it could be great.
Except the IRS’ computer doesn’t expect that money to be a writeoff. So when you claim it, your return automatically gets throw onto an auditor’s desk. Now you have to go through the aggravation, stress, and costs of an audit. So, coincidentally, does your neighbor whose return was also not what the IRS expected.
Sure does give a lot of incentive to start or invest in a new business. Doesn’t it?
But don’t worry about it. This is the Land of the Free where only evil tax cheats are harassed by the IRS. You, of course, have no headaches or problems every April 15 when you fill out your tax forms. Right? Of course not. You’re just doing your duty because you know it’s the right thing to do. It has nothing to do with them threatening to ruin your life if you don’t..
If this were truly America, April 15th would be a day of mass civil unrest and disobedience.