The Frankish Reich Posted July 12 Share Posted July 12 7 minutes ago, Backintheday544 said: everyone would put they made $399,999 on their returns Wow, I guess Tommy Boy never thought of that! Or maybe he did think of that and he puts $399,999 on his return and doesn't want to be audited. Link to comment Share on other sites More sharing options...
Westside Posted July 12 Share Posted July 12 Just now, The Frankish Reich said: Wow, I guess Tommy Boy never thought of that! Or maybe he did think of that and he puts $399,999 on his return and doesn't want to be audited. Yeah, like that would never get caught! 🙄 1 Link to comment Share on other sites More sharing options...
LeviF Posted July 12 Share Posted July 12 17 minutes ago, Backintheday544 said: For people under $200,000 of income, audit coverage is about 0.1 percent whereas audit coverage peaks at 3 percent for people in higher incomes. But again, you want to play the per capita games (66% vs 88%!) until it no longer suits you (now, or for crime, or any number of things). You latched onto incomplete data, obviously never actually looking at the source material that you recommended I look at thinking you had a solid snarky retort, because it painted a picture that you thought looked good for *your guys*. The claim is that there is all this uncollected tax from rich folks and the IRS needs shitloads more money to capture it. Either the IRS doesn't believe that, or they don't care. If the rich are illegally withholding tax money from the G at an astounding rate you'd think that they'd audit more than 0.4% of returns reporting income of $10M or more in 2021. Link to comment Share on other sites More sharing options...
sherpa Posted July 12 Share Posted July 12 What happens makes sense. The IRS audits those whose returns are either wrong or suspicious. If you misstate earnings, they send you a notice of payment due with a penalty. The chances are that lower income returns are not professionally done, and would be more likely to contain errors, or have the return prepared by someone not well versed in tax law, thus they get noticed. Higher income folks have their returns professionally prepared, and are much less likely to have obvious errors. They don't audit just for fun, they do it when they think they are going to get a return on their time. 1 1 Link to comment Share on other sites More sharing options...
The Frankish Reich Posted July 12 Share Posted July 12 2 minutes ago, sherpa said: What happens makes sense. The IRS audits those whose returns are either wrong or suspicious. If you misstate earnings, they send you a notice of payment due with a penalty. The chances are that lower income returns are not professionally done, and would be more likely to contain errors, or have the return prepared by someone not well versed in tax law, thus they get noticed. Higher income folks have their returns professionally prepared, and are much less likely to have obvious errors. They don't audit just for fun, they do it when they think they are going to get a return on their time. Agreed. But I will add: there's also a ton of fraud with the EITC/additional child tax credit, and that fraud occurs in the lower-income returns. A lot of people who file those returns don't even know that some unscrupulous tax preparer included false dependents. I've seen this (a lot of times) in returns from recent immigrants, legal or not. Since these are so called "refundable" credits, someone who had no withholding will still get a nice Easter present from Uncle Sam. So we shouldn't audit those returns if they show several nephews and nieces as "dependents" because, after all, these folks are not rich? Link to comment Share on other sites More sharing options...
Tommy Callahan Posted July 12 Share Posted July 12 meh. this is a good example of why the left has an integrity problem. It was sold as one thing, then when it's not the truth, the new truth emerges. the poor and middle tend to do their own or use a fly by night vs an accountant. Here is info from a few years ago that shows the audit rate by income. Seems like we are going back to the old IRS audit rates across the spectrum. https://www.irs.gov/pub/newsroom/statement-for-updated-audit-rates-ty-19.pdf Link to comment Share on other sites More sharing options...
Backintheday544 Posted July 12 Share Posted July 12 3 hours ago, LeviF said: But again, you want to play the per capita games (66% vs 88%!) until it no longer suits you (now, or for crime, or any number of things). You latched onto incomplete data, obviously never actually looking at the source material that you recommended I look at thinking you had a solid snarky retort, because it painted a picture that you thought looked good for *your guys*. The claim is that there is all this uncollected tax from rich folks and the IRS needs shitloads more money to capture it. Either the IRS doesn't believe that, or they don't care. If the rich are illegally withholding tax money from the G at an astounding rate you'd think that they'd audit more than 0.4% of returns reporting income of $10M or more in 2021. https://www.cbsnews.com/amp/news/irs-plans-audit-increase-who-will-be-targeted/ The IRS plans to triple the audit rates on large corporations with assets of more than $250 million. Audit rates for these companies will rise to 22.6% in tax year 2026 from 8.8% in 2019. Large partnerships with assets of more than $10 million will see their audit rates increase 10-fold, rising to 1% in tax year 2026 from 0.1% in 2019. Wealthy individuals with total positive income of more than $10 million will see their audit rates rise 50% to 16.5% from 11% in 2019 Their strategic plan calls for exactly that in 2024 as IRA funds hit the agency and agents are trained. Link to comment Share on other sites More sharing options...
LeviF Posted July 12 Share Posted July 12 4 minutes ago, Backintheday544 said: https://www.cbsnews.com/amp/news/irs-plans-audit-increase-who-will-be-targeted/ The IRS plans to triple the audit rates on large corporations with assets of more than $250 million. Audit rates for these companies will rise to 22.6% in tax year 2026 from 8.8% in 2019. Large partnerships with assets of more than $10 million will see their audit rates increase 10-fold, rising to 1% in tax year 2026 from 0.1% in 2019. Wealthy individuals with total positive income of more than $10 million will see their audit rates rise 50% to 16.5% from 11% in 2019 Their strategic plan calls for exactly that in 2024 as IRA funds hit the agency and agents are trained. As an aside, since it's adjacent to my world, I've noticed that they're in full-on open recruitment for criminal investigators. Interested to see 1. how many they're actually able to recruit and retain beyond, say, three years and 2. how that ends up effecting their numbers for prosecutions related to financial crimes and narcotics income. Link to comment Share on other sites More sharing options...
Backintheday544 Posted July 12 Share Posted July 12 (edited) 7 minutes ago, LeviF said: As an aside, since it's adjacent to my world, I've noticed that they're in full-on open recruitment for criminal investigators. Interested to see 1. how many they're actually able to recruit and retain beyond, say, three years and 2. how that ends up effecting their numbers for prosecutions related to financial crimes and narcotics income. The data book had the raw numbers on recruitment. Most stay in the IRS once there. A lot of people use it as a retirement plan and come at the end of their career and stay until the pension kicks in and retires). From the attorney side a lot will just stay until Public Student loan forgiveness kicks in and then leave for greener pastures. All IRS CI agents I know have been there a long time and don’t plan on leaving. Edited July 12 by Backintheday544 Link to comment Share on other sites More sharing options...
LeviF Posted July 12 Share Posted July 12 2 minutes ago, Backintheday544 said: The data book had the raw numbers on recruitment. Most stay in the IRS once there. A lot of people use it as a retirement plan and come at the end of their career and stay until the pension kicks in and retires). From the attorney side a lot will just stay until Public Student loan forgiveness kicks in and then leave for greener pastures. All IRS CI agents I know have been there a long time and don’t plan on leaving. Gotcha. I have no idea what the work culture there is like. HSI guys seem pretty happy. USSS seems like ***** gig since a lot of those guys dip after their three years is up. Especially since that mandatory rotation to DC kicks in after 3-5. Once you're an 1811 seems like you can pretty much take it anywhere in the G so retention is an issue for the bad/boring jobs. Link to comment Share on other sites More sharing options...
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