IRS and what do they really do with all their power Attempt number 2

[MoKelly]

There’s just some disagreement on how much a fair share is.

I had a boss who liked to say “fair is where they give ribbons to pigs”.

MoKelly

 

[Hay Dude]

I completely understand and applaud anyone who aggressively pursues any and all legal deductions or loopholes in the tax system.

 

[3Ts]

It took me a long time to figure out what a tax loophole was and how I could get some of this money all the rich folks were getting thru those loopholes. Sounded kinda illegal. It annoyed me once I figured out what a tax loophole was - it's an authorized deduction as specified in the tax code written in by congress and available to everyone (that meets the criteria). Someone does not want the deduction to exist so they call it a loophole so it will be easier to eliminate the next time the tax law is modified.

 

[MoKelly]

Many feel Muni bonds are loopholes.

Buy a Muni in your state and no federal or state tax on the interest.

Makes the after tax coupon rate meaningfully higher depending on your tax rate.

Best to buy the Muni bond directly rather than thru a mutual fund.

MoKelly

 

[JasperFrank]

I personally have never had a problem with the IRS. Actually, they seemed rather willing to figure things out after a phone call or two, and a few letters. They are tasked with a huge job, of figuring out if income is laundered or real. I've had to on occasion explain where money came from and where it went. The assigned agent would look at it and go OKAY based on my filings and why I filed the way I did: No Problem. They, the IRS, are not bad people out to screw you. In some cases, the agent even told me about how to file in a different way, to save a bit on money. So all I've ever gotten was Tax Advice from the IRS.

 

[ruffdog]

As long as power listens to big money, big money will be laughing all the way to the bank. Welcome to the big peasant pile people. Some peasants may be on the top of the pile while other's are below. It's still just the pile until they all wake up.

 

[jeff9366]

CNBC - Today

• The wealthiest 10% of Americans now own 89% of all U.S. stocks, a record high that highlights the stock market’s role in increasing wealth inequality.
• The top 1% gained over $6.5 trillion in corporate equities and mutual fund wealth during the pandemic, according to the latest data from the Federal Reserve.
• The bottom 90% of Americans held about 11% of stocks, and added $1.2 trillion in wealth during the Covid-19 pandemic.

The IRS is understaffed.

The 12 million documents exposing illegal tax avoidance by the ultra-wealthy, called the Pandora Papers, succeeding the Panama Papers, shows that some significant portion of the very wealthy avoid taxes by illegally concealing billions in assets and income generated by these assets. The vastly wealthy understand understaffing the IRS is their best insurance against being discovered as tax cheats.

It is in the interest of ultra wealthy tax cheats that the middle class should be upset with the IRS. Understaffing the IRS achieves this.

 

[Torvy]

Ditto most of the departments. I knew a guy who worked for Dept of Ag. He carried a sidearm and went on raids like one would expect of the FBI. (our kids were in middle school together).
Frankly, these types of raids by feds should be illegal unless they have a specific warrant permitting it due to evidence the person(s) being raided are armed and dangerous. This is overkill for most financial or other 'white collar' crime.
Next, they will send armed Ag cops to check your diesel for red dye.

 

[ruffdog]

We now live in a country that even grocery cashiers are at risk of death over something as simple as a mask. Yeah, if I was a government worker in ANY enforcement role, I would be armed.

Killing Of Georgia Cashier Is Latest In A String Of Fatal Shootings Over Mask-Wearing—Here Are The Rest

 

[plowhog]

It took me a long time to figure out what a tax loophole was and how I could get some of this money all the rich folks were getting

Suppose you have a relative in the Nevada National Guard. You buy a shiny new $80,000 diesel pickup but don't have to pay any sales tax-- because of that affiliation. A savings of about $7,000. All your friends and neighbors who want the same truck must pay the tax-- would you call that a loophole?

National Guard members get sales tax holiday over Nevada Day weekend

Members of the Nevada National Guard will have a sales tax holiday in the final three days of October. The Nevada Department of Taxation issued guidance this week saying a bill passed during this year's legislative session provides an exemption for certain members and qualifying dependents. The...

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