IRS Whistle-blower Alerts to Huge Tax Loophole
Great article in the Austin American Statesman about an IRS whistle-blower and his attempts to point out the huge cost to taxpayers on ITIN numbers.
The article is chock full information on a number of items - the ITIN program itself; how fraudsters and maybe even drug cartels are using loopholes costing taxpayers huge amounts of money; how the whistle-blower process works.
But in light of the ongoing Tea Party fiasco, the more interesting thing is how the IRS works on a personal level. I often tell clients that no two tax cases are the same, primarily because the IRS seems to have different "tracks" to handle cases. Their computer systems handles cases differently. Add the human touch, and you the process gets even trickier. This article describes how IRS workers are evaluated and how one case can get lost in a volume of cases. This is great example of why its sometimes best to "kick the can down the road".
The two examples also explain why a number of other techniques work. For example, I'm adamant about over preparing for an audit - it makes the auditor more likely to pass on otherwise key issues. Or, the easier you make on the IRS agent, the easier it is for them to check you off your list and let them focus on a more difficult case.
It also points out that the human touch can be detrimental - see the Tea Party cases.
The article is chock full information on a number of items - the ITIN program itself; how fraudsters and maybe even drug cartels are using loopholes costing taxpayers huge amounts of money; how the whistle-blower process works.
But in light of the ongoing Tea Party fiasco, the more interesting thing is how the IRS works on a personal level. I often tell clients that no two tax cases are the same, primarily because the IRS seems to have different "tracks" to handle cases. Their computer systems handles cases differently. Add the human touch, and you the process gets even trickier. This article describes how IRS workers are evaluated and how one case can get lost in a volume of cases. This is great example of why its sometimes best to "kick the can down the road".
The two examples also explain why a number of other techniques work. For example, I'm adamant about over preparing for an audit - it makes the auditor more likely to pass on otherwise key issues. Or, the easier you make on the IRS agent, the easier it is for them to check you off your list and let them focus on a more difficult case.
It also points out that the human touch can be detrimental - see the Tea Party cases.