Thursday April 14 2010
John Stossel is fed up with the income tax, and as he says, how dare a government do this to its own people. He notes the cost of complying with tax filing that could be spent much better in other ways. Oddly I never hear CPAs addressing this issue. I would agree that vast amounts of money and time are wasted on tax preparation.
An article from the WSJ lists several ways to deal with the IRS. The truth of course is that one should conduct one's affairs in such a manner that the IRS does not come knocking. If they do, be prepared with full explanations for each of their questions. Do not represent yourself, retain a professional who will not be emotionally involved. If the IRS comes to your office, have an office cleaned out and ready for him or her, one that is well lit and appointed, such professional treatment is appreciated. No do not put the agent in the basement with a single 25 watt bulb overhead….
An auditor is looking for someone that is unprepared. If you have a folder with a written answer for every question, a nice place for them to work, a tax prof there to answer questions, chances are they will sum things up, ask for some money and move on looking for a better mark, so to speak.
In the article, the taxpayer decides to fight on over $151. This is ridiculous, if the amount they ask gets anywhere reasonable, pay off, it is cheaper than fighting and the agent gets to say they achieved something.
Meanwhile hundreds of tax protests take place across America. TEA party stands for Taxed Enough Already. Harry Browne who ran as the Libertarian candidate for President wrote in his book, Why Government Does Not Work, that one party was liable to disappear. No, not the Democrats, Harry suggested that it would be the Republicans as they did not stand for anything. The TEA party movement lacks a spark type event, and a leader. One wonders if the entire Republican Party could implode ovetnight rather like Arthur Andersen. Just a thought…..The Republican Party was carried into national office by the onset of the Civil War. It is just such landmark events that both create and destroy long standing institutions.
Professor Elam 
Leave a comment