Today, Explained It's a great time to cheat on your taxes
Apr 15, 2019
Paul Kiel, a reporter for ProPublica focusing on the IRS, reveals a crisis within the agency stemming from political budget cuts. He discusses how these cuts have led to fewer audits and a growing tax gap, particularly impacting low-income taxpayers. Kiel highlights the stark inequalities in tax enforcement, where wealthy individuals often evade scrutiny. Despite the challenges, he emphasizes the dedication of IRS employees to public service and the need for proper funding to restore the agency's effectiveness.
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Awareness of IRS Issues
- Most taxpayers interact with the IRS through automated systems, unaware of its weakened state.
- However, business owners and wealthy individuals, who are more likely to be audited, are aware of the decreased scrutiny.
Tax Cheating
- Reduced IRS enforcement can lead to increased tax cheating, both blatant and subtle.
- This includes hiding income or claiming questionable credits.
Two-Tiered Tax System
- A two-tiered tax system exists, favoring wealthy individuals and businesses with skilled accountants.
- Those who are on company payrolls have less opportunity to cheat.