Biden still going after the middle class

"The most recent data suggests the IRS is still focused on the middle class. As of last summer, 63% of new audits targeted taxpayers with income of less than $200,000. Only a small overall share reached the very highest earners, while 80% of audits covered filers earning less than $1 million. Don’t forget to save those charitable-giving receipts." Wall Street Journal,  April 3, 2024.

I wonder why the IRS doesn't go after the federal government employees who are behind on their taxes. 10 years ago the figure was over 300,000, but nothing has been done.

The Number of Tax Delinquent Feds Is Growing. The IRS Watchdog Wants a Crackdown. - Government Executive (govexec.com)

$10 billion for 165,000 new IRS agents

The IRS is the "enforcer" of the new health care mandates. It will have the power to

"monitor individuals and businesses’ health insurance statuses through the mandatory reporting the bill requires. Under the law, every individual and most businesses are required to report to the IRS, on their tax returns, whether they have purchased or provided the required level of coverage and disclose to the IRS which months, if any, in which they failed to do so.

Using this information, the IRS would then determine whether an employer or individual falls under the mandate, which contains exceptions for religious conscience, hardship, incarcerated persons, and members of Indian tribes.

If either an individual or a business has failed to comply with this mandate for any month out of the year, they are required to pay a separate tax to the IRS. For individuals this is a maximum of $750 per person (up to $2,250 per household) and $750 per uncovered employee for businesses. Article here.

Ways and means report

Illegal immigrants are exempt from all the taxes and penalties in this law.

If the Fed doesn't know, who does?

The Inspector General of the Federal Reserve in this video (HT Taxmanblog) acknowledges that trillions of dollars of our money cannot be accounted for. The five-minute video is taken from a Congressional hearing on May 6 where Federal Reserve Inspector General Elizabeth Coleman is questioned by Congressman Alan Grayson of Florida about huge amounts of money for which the Federal Reserve is responsible. Really, this is quite alarming.



The original Bloomberg reportreferred to in the video.

I used to wonder why Congress called upon Hollywood stars to testify on weighty problems--like oceans and apples. Now I know. They are apparently better prepared as concerned actors than the OIG of the Fed whose task is described on their website but who doesn‘t seem to know or do anything:

Ms. Coleman joined the Board's OIG in 1989 as a senior auditor. She was promoted to program manager in 1999 and to senior program manager in 2001. She was appointed to the official staff in 2004, as the Assistant Inspector General for Communications and Quality Assurance. Over the last eight years, Ms. Coleman has worked closely with the Executive Council on Integrity and Efficiency, a professional organization of about thirty statutory Inspectors General who are appointed by their agency heads in certain designated federal entities, including the Board.

Prior to joining the Board's staff, she was employed by the Government Accountability Office. Ms. Coleman has a BBA from James Madison University and is a graduate of the Stonier Graduate School of Banking, Georgetown University. She also attended the Federal Reserve System's Trailblazers Leadership Conference. Ms. Coleman is a Certified Information Systems Auditor.

The OIG is tasked with the responsibility to prevent and detect fraud, waste, and abuse, and to promote economy and efficiency in the programs and operations of the Board, keeping the Chairman and Congress fully and currently informed of problems.

An Inspector General may be removed from office by the President, and must communicate the reasons for any such removal to both Houses of Congress, as outlined in Section 3(b) of the Inspector General Act of 1978.

If you ever need to draft a mission statement, be sure to read theirs. But only after you watch her testimony. It's good for a laugh.

This would never happen to you or me

"LA Times: Though he was a prodigy in the world of economics, Timothy F. Geithner underwent an IRS audit in 2006 and ended up paying back taxes for a mistake in two years' worth of filings. That was embarrassing enough.

But just as he was about to be named to head the Treasury Department, a more awkward fact came to light: Geithner had made the same error in two earlier tax years and failed to fix it even after the audit."

Someone at IRS gave Geithner a pass Go, do not go to jail card, because he was too big to fail. It was the Obama team vetting him that found the error. The IRS let him off the hook. Another too big, too brilliant to fail, Washington insider. When will we learn? We are about to have a tax crook as head of Treasury! Wasn't this Madoff's problem? Wasn't this the story with the Indian Enron guy? [B. Ramalinga Raju of Satyam] A different set of rules for our buddies? The little guy is hounded, charged interest, and fined for even a minor infraction of "forgetting" a tax rule. When our son needed to dip into his IRA a few years back to pay his bills, he carefully (he thought) paid the penalty and taxes due. But something was overlooked (don't ever try to figure out those rules without an accountant or lawyer), and shazam, down came the IRS on him 2 or 3 years later with a fine and interest. He had the additional cost of hiring a lawyer. Geithner gets into trouble, and the IRS doesn't even follow through. Dual set of rules. And then there's the domestic staff issue. Why do all these Democrats get caught by this? Why can't they figure out why that domestic is such a bargain? Wasn't that a Clinton staffing problem too.

And all these Democrats and media talking heads excusing him for being "sloppy," or "overlooking" something. Would they be so kind to a Republican appointee, or even my son?