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IRS Agents in new Biden Fail Plan
So, 87K new IRS agents for enforcement...was doing some reading and in 2020 it appears the IRS was authorized to hire 5000 new staff, and missed the mark due to a number of issues but incompetence (in hiring process) and low pay was a factor. In 2021 they were authorized 10000 new employees and only got 6700. This year they did a "surge" hiring to try and get an emergency 5K workers to process the 24 MILLION backlogged claims. No word on how that hiring is going. And other research indicates staffing has long been a problem for the IRS going back years (they are down over 10K workers overall from 2010 levels despite MASSIVE incentives and attempted hiring binges).
So I am wondering if an organization that can never seem to reach their hiring goals, and hiring and retention has always been an issue, how long do you think it will take to on board these 87K new Agents? The law is supposed to bring in 15 percent per year, so basically 7 years to hire them all, but with natural attrition and the obvious issues the IRS already has hiring, does anyone think they will ever really hire all these people? Enforcement will tick up slowly I'm sure, but I wouldn't worry about your audit chances going up for years.
https://www.atr.org/treasury-confirms-biden-plans-hire-87000-new-irs-agents-enough-fill-nats-park-twice/https://www.washingtonpost.com/business/2022/03/10/irs-hire-tax-return-backlog/
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There were BILLLIONS of dollars of checks uncashed during 2020. They just sat around in IRS offices around the country unprocessed.
I had an instance where I was TRYING to pay some payroll taxes for a company. They would not take a physical check. They demanded all payments be electronic. Took almost a year to get a PIN from them to be able to give them money. Nobody would answer the phone there.
I'm not saying that's what will happen, only that Kirk said it.
It's the LLC's and S-Corp's where you are rolling your business results into your personal results where things a bit dicer. Setting off the cascade of audits is what really needs to be avoided by these small players and probably why they do fold so quickly to IRS. IRS audit findings lead to State audits, which lead to workers comp audits, etc.
Had the irs make an error and double tax me on some income. Showed the error repeatedly. Got a CPA and had him draft the letter and documents. Everytime I would talk to an agent "Oh this is obviously wrong and you seem to have the documents in order." Two weeks later in the mail without fail there would be a new notice of back taxes owed and additional penalty fees.
I thought about going to legal counsel but at the end of the day it would have cost me considerably more in legal fees than just paying the stupid amount since it was a small side source of income plus the fact that they might turn around and audit me which would eat my time even more than it already had which is a lot more valuable.
They know this. It's their entire strategy.
There just isn't that much money out there for the IRS to grab. There is a huge cash economy out there. But auditing a hispanic landscaper isn't going to get you a lot of money. What IRS agent wants to go audit a MS-13 drug dealer? If you want to get some federal money out of these people, drop the income tax rates and substitute it with a federal sales tax/gross receipts tax. All of the hardware/software infrastructure is there, and you collect the money with hardly any need for additional manpower. The rich are paying there fair share and then some. They audited the sh*t out of Trump and came up with peanuts. There is some fringe benefit and entertainment shenanigans but that doesn't add up to hundreds of billions like the dems claim. Take your family to Hawaii for your annual board of directors meeting, do the proper paperwork and you are golden.
If you wanted to save some money, spend the billions on fixing the border and kicking out the illegals.
https://ace.mu.nu/
Even bootlicking Caesarist Regime defender AllahPundit has a problem with Biden hiring 87,000 new tax lawyers [actually very few will be attorneys or CPAs] to audit the lifeblood out of the middle class. As one Trusted Insider said of Biden, "He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance."
The left is taking a bizarre stance: If you haven't committed any crime, you... shouldn't worry about cops demanding, on penalty of fine and imprisonmen, that you answer their questions and show them your papers.
Does this thinking extend to all law enforcement or just the swarms of Officers sent out to eat out the substance of the people?
That happened to me years ago and at that time I was making around $100,000. Get used to it because that is what socialist/communists do. Do you think that fucking idiot biden paid taxes on his 10% for the big guy? Not a chance.
I have a customer who designs fences and decks for upper middle and wealthy people. His annual income is around $250K. During an audit he was out quoting jobs and his wife mistakenly offered up the books to an IRS agent performing an audit. She fucked up and don't even start with the "she should have known better" because this is a small family owned business that provides a quality service for homeowners, they were just trying to make it and started the company from scratch. The agent found that they had mistakenly not paid their full amount of workers comp. An honest mistake as they were unaware of exactly what the law was. They paid in $50K a year and were supposed to be putting in somewhere close to 75K. The IRS is now demanding $500K in back taxes which includes interest which will put the company out of business. These are not rich people. The legal fees to defend themselves alone will put them out of business and force them to declare bankruptcy putting 24 people out of work. Now imagine 87,000 more IRS agents prowling for their next piece of destruction so that the fed can promote them.
A lot of entrepreneurs are great at providing a product or service, many of them are not good business people. They aren't trying to defraud the country on taxes, they are just ignorant.
Only finding I’ve ever had is a $115 penalty on some casual labor bullshit.