IRS REELS UNDER TAX REVOLT
Revenuers Running in Red
By James P. Tucker
Jr.
The Internal Revenue Service is reeling under the tax
rebellion, as unpaid taxes reach $300 billion,according to outraged tax
collectors.
Do-It-Yourself Tax Cuts: The Crisis in U.S. Tax
Enforcement by economist Max
Sawicky found the tax rebellion “encompasses
about 15 percent of all taxes owed to the government— or
about one dollar of every six owed in individual
and corporate taxes.”
Unfortunately, Sawicky views this news as bad.
Most of the unpaid taxes—at least $250 billion of the total
$300 billion—results from taxpayers either underreporting income or claiming too many deductions, he
said. About $30 billion of the unpaid total is from
nonfiling and another $32 billion results from underpayment.
Individuals in the so-called tax honesty movement account
for the lion’s share, the report found. Underreporting of individual income
accounts for $150
billion to $187 billion in unpaid taxes, while another $30
billion is from underreported corporate income, $66 billion to $71 billion from
payroll taxes, and $4 billion
from death and excise taxes.
“The tax enforcement system has become so dysfunctional that
it is now its own worst enemy,” Sawicky said.
Many Americans “are dealing themselves a do-it-yourself tax
cut.”
Sawicky and others called for more funding for IRS enforcement efforts.