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Burning Bridges with the IRS

Posted on the 07 June 2013 by Missliabilities
As a tax accountant in these times, it's really hard not to comment on the tax-related news, especially when I see my friends write livid posts about the IRS. When I think about the "loopholes" people are always talking about closing in order to bring in more tax revenue I just shake my head.
There are rarely loopholes in taxes, my friends. The Internal Revenue Code and supplements are so complex because there used to be loopholes. Since then they have been patched over with intricate language that they hire people like me to understand. People are in an uproar about Apple and the lack of taxes they pay in the US. That's not ILLEGAL, it's just business. Should they have paid more? I don't know. If we start making it harder for innovative companies to sell in the U.S., then there will be less of those companies here.
The whole thing makes me feel as bitter as the health care legislation does. If you're going to decrease Medicare reimbursement, increase the amount of patients that aren't paying for health care, and not assist the medical profession in any way - they will collapse under the weight. Spending on medical research will decrease (who wants to be innovative when you'll get taxed like crazy in this country and hung for finding better tax shelters in foreign countries?), hiring and decent training will cease, young people will find less of an incentive to go into that profession. You'll be in the desert with no drink for miles.
And the excess spending by the IRS? I want some more details on this. The million dollar conferences could probably be explained - you need to pay the best professionals in the world to speak at these things. You have to put them up for a week in a hotel and make sure their meals and transportation are taken care of. You have to have training materials printed up, facilities rented, catering brought in. Lets see how much they brought in from the conference (if there was a fee) versus what was spent. Take all of this outcry with a grain of salt.
The IRS is an enormous organization and taking away all their employee benefit programs isn't the first answer. If someone took away my free dinners or day at the beach with coworkers, I'd be pissed off and just tax the shit out of everyone who came through my door. Especially with the furloughs occuring this year. If you want an IRS that acts more like a business than a bureacratic agency then prepare to accept the consequences.
Be careful what you wish for when it comes to tax agencies...

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