Tags: IRS | audit | tax | cheat

Yahoo's Newman: Why Now Is a Great Time for Tax Cheating

By    |   Thursday, 05 March 2015 07:00 AM

Some government budget cuts can hurt you — if the Department of Homeland Security cuts back on airport safety personnel, for example.

But some can help you, such as spending reductions at the Internal Revenue Service that are forcing the agency to pull back on tax audits.

So, "if you don't already cheat on your taxes, it's an opportune time to start," writes Yahoo Finance columnist Rick Newman.

The probability of getting audited this year has dropped to an 11-year low, with just 0.86 percent of individual taxpayers likely suffer that fate this year, he reports. That's down from 1.11 percent in 2010. For those earning more than $1 million, the slide will likely be to 7.5 percent from 8.4 percent.

That's "a deeply disturbing drop in our individual audit rates," IRS Commissioner John Koskinen said in a speech last month.

To be sure, the IRS' budget cuts are a double-edged sword for taxpayers. Anyone seeking tax assistance from the IRS or awaiting a refund from the agency can expect delays.

Meanwhile, though many people believe that the wealthy pay little if any taxes, nothing could be further from the truth, says Stephen Moore, chief economist at The Heritage Foundation.

To be sure, middle-class angst about taxes is understandable, he writes in The Washington Times.

"But the idea that the rich aren't paying any taxes is based on misinformation fed to voters."

As for the misinformation, "we are told by no less than President Obama that these millionaires and billionaires have all the money, but they don't bear much if any of the burden for schools, roads" etc. Moore says.

Yet the latest IRS statistics show that the top 1 percent of Americans by income earned 19 percent of total income and paid 35 percent of federal income taxes in 2011, Moore explains.

Obama wants to increase taxes for the wealthy. But "history proves that cutting tax rates is a better way to get money out of the rich than raising them," Moore states. "Low tax rates on work and investment create a prosperous economy with rising incomes for everyone."

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Some government budget cuts can hurt you — if the Department of Homeland Security cuts back on airport safety personnel, for example.
IRS, audit, tax, cheat
Thursday, 05 March 2015 07:00 AM
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