For those of you cheat on your tax return...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

This. Waiters, hairdressers, cleaners, nannies, babysitters. If they are paid cash, all tax cheats.

Oh, please. You have to make a pretty decent amount of money nowadays before you actually have to pay a lot of income tax. Even if these folks declared every cent they made, their federal income taxes would be low. It makes no sense for the IRS to go after them from an efficiency standpoint. Rich people and corporations dodging taxes are where the money is.

+1.

Of course it makes sense for the ira to go after the big dogs, but cheating is cheating even if it’s “not a lot of money”. Do you teach your kids it’s ok to steal as long as it’s not a lot of money? Or rules just don’t apply to you?

[Anonymous]

I cheated on my tax return for the first time last year. For about 20 years I've been filing a VA state tax return. But last year I filed one in MD too. It felt so naughty, I think I'll do it again this year too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Most people don't describe self employed individuals as wage earners. When your money comes from a salary and your investments are in brokerage accounts and you don't own a business or property beyond a house, there just are not that many ways to cheat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

This. Waiters, hairdressers, cleaners, nannies, babysitters. If they are paid cash, all tax cheats.

Oh, please. You have to make a pretty decent amount of money nowadays before you actually have to pay a lot of income tax. Even if these folks declared every cent they made, their federal income taxes would be low. It makes no sense for the IRS to go after them from an efficiency standpoint. Rich people and corporations dodging taxes are where the money is.

+1.

Of course it makes sense for the ira to go after the big dogs, but cheating is cheating even if it’s “not a lot of money”. Do you teach your kids it’s ok to steal as long as it’s not a lot of money? Or rules just don’t apply to you?

Oh, please. Where did I say that it's ok for anyone to cheat? I'll answer for you: nowhere.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Most people don't describe self employed individuals as wage earners. When your money comes from a salary and your investments are in brokerage accounts and you don't own a business or property beyond a house, there just are not that many ways to cheat.

I don't know if anyone disagreed with that point. But the article is not about that.

- dp

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

This. Waiters, hairdressers, cleaners, nannies, babysitters. If they are paid cash, all tax cheats.

Oh, please. You have to make a pretty decent amount of money nowadays before you actually have to pay a lot of income tax. Even if these folks declared every cent they made, their federal income taxes would be low. It makes no sense for the IRS to go after them from an efficiency standpoint. Rich people and corporations dodging taxes are where the money is.

+1.

Of course it makes sense for the ira to go after the big dogs, but cheating is cheating even if it’s “not a lot of money”. Do you teach your kids it’s ok to steal as long as it’s not a lot of money? Or rules just don’t apply to you?

Well that is sort of the problem with a system of voluntary compliance like we have here in the US. The IRS relies upon taxpayers to be honest and accurately report their income. The IRS also has limited resources- I'm sure you have seen the reports of the funding issues? They have a limited pool of agents and revenue officers who can audit taxpayers; it makes sense for them to prioritize taxpayers who have more money. That's not what they are currently doing, as lower income people receiving the EITC are 30% or so more likely to be audited than other economic groups.

Also? You want to solve the issue of cheating that you pointed out? Congress could pass a law that allows the IRS to assess taxes and send a bill/refund automatically to citizens. Other countries do this. Or pass strengthened information reporting laws.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Hi, self-employed person here. I generally don’t have enough things to write off to take anything other than the standard deduction. I did try out itemizing my taxes for a few years and it was more work than it was worth. You do still need documentation for all of these write offs/deductions. Cash payments are not a large part of my business, because everyone else wants a receipt for their own expenses as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Hi, self-employed person here. I generally don’t have enough things to write off to take anything other than the standard deduction. I did try out itemizing my taxes for a few years and it was more work than it was worth. You do still need documentation for all of these write offs/deductions. Cash payments are not a large part of my business, because everyone else wants a receipt for their own expenses as well.

All you need to do is email stuff to yourself, then turn everything over to an accountant and spend a few hundred dollars on her -- and that can be written off as a business expense too. Do your self a favor and try harder.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Hi, self-employed person here. I generally don’t have enough things to write off to take anything other than the standard deduction. I did try out itemizing my taxes for a few years and it was more work than it was worth. You do still need documentation for all of these write offs/deductions. Cash payments are not a large part of my business, because everyone else wants a receipt for their own expenses as well.

All you need to do is email stuff to yourself, then turn everything over to an accountant and spend a few hundred dollars on her -- and that can be written off as a business expense too. Do your self a favor and try harder.

It’s more in the thousands not hundreds for it to make an impact on tax bill.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

1) They already go after this group the most.
https://www.cbsnews.com/news/where-does-the-irs-audit-the-most-poor-rural-counties-that-are-mostly-black/

2) Refundable credits like the EITC and the CTC are the most scrutinized at the IRS, and are the easiest to audit.

3) The money from these audits is not a lot bc these people don’t have a lot. Audits of wealthier people result in more tax even with the increased costs.

1) Not true, not even by a mile (and the report in the very link you provided shows why)

2) Easiest to audit: Yes. Most scrutinized: not by a mile

3) You don't understand volume. 20 million people x $500 = $10 billion in easy-to-get tax dollars. That's more than fighting 10 billionaires to death and getting $500M from each -- which rarely ever happens to begin with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

+1 op clearly has no idea what they are talking about. Banks, brokerage houses and employees report income directly to the IRS so if something doesn’t tie out, there’s a notice. It’s very hard to find ‘loopholes’.

You've never met self-employed people who deduct their whole life? Or get paid partially in cash?

Hi, self-employed person here. I generally don’t have enough things to write off to take anything other than the standard deduction. I did try out itemizing my taxes for a few years and it was more work than it was worth. You do still need documentation for all of these write offs/deductions. Cash payments are not a large part of my business, because everyone else wants a receipt for their own expenses as well.

All you need to do is email stuff to yourself, then turn everything over to an accountant and spend a few hundred dollars on her -- and that can be written off as a business expense too. Do your self a favor and try harder.

It’s more in the thousands not hundreds for it to make an impact on tax bill.

I said spend a few hundred ON THE ACCOUNTANT. Duh.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

1) They already go after this group the most.
https://www.cbsnews.com/news/where-does-the-irs-audit-the-most-poor-rural-counties-that-are-mostly-black/

2) Refundable credits like the EITC and the CTC are the most scrutinized at the IRS, and are the easiest to audit.

3) The money from these audits is not a lot bc these people don’t have a lot. Audits of wealthier people result in more tax even with the increased costs.

1) Not true, not even by a mile (and the report in the very link you provided shows why)

2) Easiest to audit: Yes. Most scrutinized: not by a mile

3) You don't understand volume. 20 million people x $500 = $10 billion in easy-to-get tax dollars. That's more than fighting 10 billionaires to death and getting $500M from each -- which rarely ever happens to begin with.

+1

I don't see why people don't get this. Small amounts from millions of people usually adds up to a much bigger amount than a large amount from one individual.

I see this in discussions of corporate pay. Reducing a CEO's pay by $10 million and spreading that over tens of thousands of employees does not result in a noticeable pay increase for any employee. Same principle at work as above.

(Not meant as a defense of executive management pay--current practices have many problems, but it is generally not the root of low employee pay.)

[Anonymous]

I do incredibly well. Numerous businesses, commercial real estate and residential real estate. I lawfully net about $4M in taxable income on my personal return (after maybe $500k in dedeuctiobs) and have (with a steady increase) for years.

I would never cheat on my taxes and never have. I already make more than anyone could ever need so it seems pointless. I pay about $10K to have our personal taxes done (we file in 4-6 states annually plus federal). My businesses pay another $20-30k in tax preparation annually. I could cheat if I wanted since it’s largely self reported. My federal taxes exceed $1M and state taxes are around another $400k or so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way. Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group. Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.

1) They already go after this group the most.
https://www.cbsnews.com/news/where-does-the-irs-audit-the-most-poor-rural-counties-that-are-mostly-black/

2) Refundable credits like the EITC and the CTC are the most scrutinized at the IRS, and are the easiest to audit.

3) The money from these audits is not a lot bc these people don’t have a lot. Audits of wealthier people result in more tax even with the increased costs.

1) Not true, not even by a mile (and the report in the very link you provided shows why)

2) Easiest to audit: Yes. Most scrutinized: not by a mile

3) You don't understand volume. 20 million people x $500 = $10 billion in easy-to-get tax dollars. That's more than fighting 10 billionaires to death and getting $500M from each -- which rarely ever happens to begin with.

+1

I don't see why people don't get this. Small amounts from millions of people usually adds up to a much bigger amount than a large amount from one individual.

I see this in discussions of corporate pay. Reducing a CEO's pay by $10 million and spreading that over tens of thousands of employees does not result in a noticeable pay increase for any employee. Same principle at work as above.

(Not meant as a defense of executive management pay--current practices have many problems, but it is generally not the root of low employee pay.)

Math is not one of America's top talents.

[Anonymous]

Anonymous wrote:I cheated on my tax return for the first time last year. For about 20 years I've been filing a VA state tax return. But last year I filed one in MD too. It felt so naughty, I think I'll do it again this year too.