Posted by Frank James at 4:09 pm CST
The Transactional Records Access Clearinghouse, known as TRAC, released a new study that shows that the Internal Revenue Service conducts face-to-face audits on a smaller percentage of millionaires than low-income taxpayers.
While this is not a new trend, it is still interesting, especially as April 15 approaches.
What’s really intriguing is that the IRS won’t explain what on its face at least appears to be its odd auditing practices.
“The explanation for these curious results is not clear,” the TRAC press release says. “As far as is known, IRS Commissioner Mark W. Everson has not spoken to this issue. And the release of detailed statistics that might explain the government's strategy -- available to the public for over 30 years -- is now being withheld by the agency.”
The IRS may have a perfectly reasonable reason for withholding the data. It indicates that disclosing the data would “adversely affect tax administration.”
So we’ll just have to trust the IRS. But in the words of President Ronald Reagan, it would be better if we could trust but verify.
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Comments
I knew it.
First Wal Mart, then Halliburton and the Military Industrial Complex. Now we have millionaires as John Edwards said "counting their money by the swimming pool" without fear of Bush's IRS. This is the REAL reason he went into Iraq. I think Helen Thomas should follow up on this.
This is the biggest scandal since the Downing Street Memos. On top of it, China holds all of our debt!
Somebody please supply a quote from one of our forefathers to put this all into perspective!
I'm voting for Nader/Striesand in 2008.
(Yes, I'm being sarcastic)
Posted by: JD | March 28, 2006 6:21 PM
Since most people won't actually read the TRAC report, I'll give you some details from it that Frank James won't.
First, Mr. James leaves out the fact that TRAC director Susan Long is currently involved in a lawsuit against the IRS, indicating a possible bias on TRAC's part.
Second, the IRS has notified TRAC that the numbers might contain a glitch, and that the report might be based on erroneous numbers.
Third, TRAC itself admits that the enforcement patterns might reflect Congress's orders to the IRS to crack down on fraud in the Earned Income Credit, which primarily effects lower income taxpayers.
Fourth, TRAC itself notes that this pattern of auditing lower income taxpayers more has occurred before, notably in FY 1999, when Bill Clinton was president.
Is it just a coincidence that all these details, which contradict the theme of the article, were left out of the article?
Posted by: Bruce | March 29, 2006 7:33 AM
"I'm voting for Nader/Striesand in 2008.
(Yes, I'm being sarcastic)
Posted by: JD | Mar 28, 2006 6:21:29 PM"
Well, Streisand would certainly make a lot more sense than you do, and she'd probably be a far greater statesman and leader.
And I'm NOT being sarcastic, just realistic.
Posted by: John | March 29, 2006 3:15 PM
Are you still mad at me John?
Posted by: JD | March 29, 2006 4:00 PM