IRS Seizes Over $100,000 From Innocent Small Business Owner, Despite Promise To End Raids

[HenryWallace]

19. I remain you humble servant!

Full disclosure: I haven’t read the linked article. I come to DU each day to escape my vocation for a few minutes.

My “guess” is informed by an intimate knowledge of the organization, its personnel and the internal controls and procedures they use to administer their charge: to keep all taxpayers on a level playing field.

Given their consistently dwindling resources, the care and professionalism which the organization exhibits is generally extraordinary.

As to the Earned Income Credit, its concept is great (provide matching income for certain low-income taxpayers who are employed in sub-standard jobs). However, a social program being implemented through a taxing system is fraught with problems:

• During the entirety of my professional career, the EIC has been at the top of the IRS’s fraud concerns, sucking up the organizations resources and manpower.
• Shady tax preparers, furniture stores, used car lots, etc., preying on this once-a-year tax refunds is, quite frankly, disgusting.
• The credit has no asset limitation, wealthy taxpayers transitioning to retirement or experiencing a random bad year can often qualify.

I’ll leave it to academics to determine overall whether to program is worthwhile.