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It Keeps Getting Easier To Dodge The Tax Man

It Keeps Getting Easier To Dodge The Tax Man
April 18, 2018 sdcdev
It Keeps Getting Easier To Dodge The Tax Man

Tax evasion, whether by legal or illegal means continues to threaten an already vulnerable tax system. It keeps getting easier to dodge taxes.

 

The result? Historically low levels of revenue. Put at risk is everything from our military preparedness budget to the already unstable social security.

 

3 things enable tax dodgers’ ploys in particular.

New incentives for would-be evaders

Lessening support for the IRS

Widening partisan distrust

 

Who is Cheating?

It’s not as easy for taxpayers in the private sector to cheat. Those who receive paychecks or salaries and file W-2 forms have fewer opportunities to avoid paying taxes. The IRS has too much information from employers and taxpayers via withholding records.

Businesses, on the other hand, can be (and are often) creative. They’re the biggest cheaters.

 

Tax Evasion, Small Business Style

One of the greatest culprits is a small business. They’re less bureaucratic, often small shops with single owners, freelance consultants, and other independent contractors.

Blatant encouragement to cheat makes fudging easy.

 

Partisan Influences

What does party have to do with it? Comparison of different tax systems shows that taxpayers are more likely to pay when they have faith in their government and the fairness of its tax system.   

Problem number one: US citizens don’t have much faith in the government.

Problem number two: Rising partisanship is a breeding ground for further mistrust of the leader in office by constituents of the opposite party.  

How much are taxpayers currently concealing? Year after year after year, the IRS makes that calculation as part of its “tax gap” reports. That means the most recent data (2008-2010) reflects a time when funding cuts were only beginning. The new Republican tax bill would be years down the road.

 

Are You A Member of IRS Solutions Software?

With all the tax codes changes and new bills, things can be confusing. IRS Solutions Software membership cuts the learning curve to a fraction, saving time and money.

Note: The IRS will be relying more on computerized notices and automatic penalties than ever before. The result? More work on penalty negotiations. And without human eyes on documents, there will also be more errors on the part of the IRS. As a member, be sure to use the notice response tool to abate penalties.    

What? Not yet a member?

Why not? IRS Solutions Software gives you the confidence to provide services you may have been uncomfortable with in the past. Another benefit of membership is the training you get on our monthly case study calls.

Don’t Miss Out! Sign up with IRS Solutions Software and Gain Access to These Informative Monthly Case Study Webinars on the 4th Thursday of Every Month at 10am-11am PDT.

Ready to learn more? For starters, please pick up our FREE PRICING GUIDE. Act now so you’re ready when your clients owe tax this year.

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