Turn your friends over to the revenuers and get rich
The Bush administration gives advice on an interesting get-rich scheme (WSJ)
Blowing the whistle on big-time tax cheats could make some informants wealthy -- as long as they have hard evidence and plenty of patience.Just over a year ago, President Bush signed legislation authorizing the Internal Revenue Service to pay sharply higher rewards to tipsters in cases involving large amounts of money. In some cases, the reward could be as high as 30% of whatever the IRS collects.
The idea behind the whistleblower law is simple: Congress hopes the lure of much bigger rewards will prompt more informants to offer better tips and help the IRS reduce the nation's $290 billion tax gap, the difference between what the agency collects each year and what it thinks it should be collecting.
Since the law was enacted, the IRS has received some large tips...
To be eligible for an award under the new program, the total amount of taxes, penalties, interest and additional amounts in dispute must exceed $2 million. And if the "allegedly noncompliant person" is an individual, that person's gross income must exceed $200,000 for any taxable year at issue in a claim, according to the IRS notice. Fill out Form 211, which also is available on the IRS Web site. Any claims must be submitted as a statement under penalty of perjury.
Comments (9)
Tax.org says: "The first income tax was moderately progressive and ungraduated, imposing a 3 percent tax on annual incomes over $800 that exempted most wage earners." This was a Union war scheme that came to cover more and more people. Its success, from the statist view, sowed the seeds for the all encompassing tax system now in place.
It did not happen all at once, but in fits and starts. Robert Higgs shows how perceived crisis lends itself to a flurry of government expansion. Once the crisus seems to dissipate the government contracts- but not all the way back to pre-crisis size. If not stopped, the inevitable trajectory is the creation of a total state.
If Prof. Higgs is correct about this "ratchet effect" then this new IRS ploy, which now only (only?!) sets everyone against the wealthy, will eventually result in all against all. This is divide and conquer a la Soviet style.
Published: December 28, 2007 12:23 PM
An excellent observation, Parrotocracy.
Published: December 28, 2007 1:05 PM
Anyone want to bet on whether we will see private tax farming in our lifetimes?
Published: December 28, 2007 2:59 PM
David Bratton:
"Tax farming in our lifetimes?"
You must be young! When I was in my teens (in the '50s), such practice was still widespread, though fading, in various political subdivisions in Pennsylvania (townships, boros, etc.) Not having then any particular interest, I don't know how long it hung around nor how prevalent it was in other places.
Of course, at least one place of which I'm aware
(Milbourne--a three-block-long by four-block-wide boro lying athwart the main street between Philly and Upper Darby--had an even more advanced method for funding their municipal activities: "ticket farming." They were especially active during rain, ticketing people for "obscured license plates" ("Here's your ticket, sir. Only $10 if you pay it now--over at the magistrate's office. And don't worry about your plate--I've already cleaned it off for you.") Of course, the major expenditures of the boro were the salaries of the magistrate and his troop. And, I seem to recall, they all eventually wound up in prison (maybe for evasion of federal taxes--don't know, but that would be at least somewhat ironic).
Published: December 29, 2007 6:33 AM
And I'm reminded also (pursuant to the above) that lately, here in NJ, there seems to be a tendency, where road-work is going on, for there to be an attending police officer paying a lot of attention to the passing, slowed-down vehicles. Mebbe checkin' 'em out for seat-belt violations--do you think?
Published: December 29, 2007 6:40 AM
And is not exactly the same thing happening in Britain ,with cleverly placed speed cameras and armies of traffic wardens...
Published: December 30, 2007 1:45 PM
Why don't they do something like this to people who report businesses that are hiring illegal aliens?
What would the "Bush administration" do about that?
Published: December 30, 2007 11:02 PM
I think the corporate politicians would lose funding if they cracked down on hiring undocumented immigrants. Their campaign contributions and expensive gifts (as well as their personal corporate profits) depend on us continuing to look the other way while each party points a finger at the other one. It's not the Bush administration either...it's every administration. Expect the same BS from whomever takes office after him (unless it's Ron Paul).
Published: December 31, 2007 1:29 PM
Good point, Aakash
Published: January 1, 2008 6:40 PM