Following Obama’s Orders, IRS Begins War on Tax Cheats
In a high-profile Tax Day press conference, President Obama announced an even more aggressive war on tax cheats. Now, the IRS is planning the assault.
By Michael Rozbruch
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It was only a couple of months ago that President Barack Obama, still freshly inaugurated, stood in the White House and announced his plan to go after — and go after aggressively — tax cheats, no matter where they hide their money.
His plan focused primarily on breaking down the network of banks and financial advisers that help U.S. taxpayers hide their money overseas, away from the watchful eye of the Internal Revenue Service.
The president’s words were tough. “If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens, and act accordingly,” he told a nationally televised audience.
But while the headlines focused on Obama’s mission to put an end to overseas tax shelters, his tax-collection plans were more far-reaching.
The president isn’t just looking for millionaires with their fortunes stashed away in Swiss banks.
No, he’s looking for what could be you — average Americans who are electing to cheat in order to avoid paying taxes.
If that fact isn’t obvious in President Obama’s speeches, it’s clear in the actions of the agency now under his watch — the IRS.
Last month, IRS Commissioner Doug Shulman announced a new recommendation that would place the government’s tax troops right on the front line of the tax-cheat war.
That’s right, the IRS is focusing on tax return preparer community. It’s not the government suspects this community of cheating; it’s that the government suspects the clients of this community may be cheating.
The government, in a sense, suspects you and is taking action.
Schulman’s recommendations include a new model for the regulation of tax return preparers; service and outreach for return preparers; education and training of return preparers; and enforcement related to return preparer misconduct.
“Tax return preparers help Americans with one of their biggest financial transactions each year,” Schulman said in a statement. “We must ensure that all preparers are ethical, provide good service and are qualified. At the end the day, tax preparers and the associated industry must be part of our overall game plan to strengthen the integrity of the tax system.”
Focus on that last line: part of our overall game plan.
The IRS realizes that it’s impossible to fully vet all of the millions of tax returns it receives every year. Getting the tax preparer community on board with enforcement will only help its tax collection efforts, the government has concluded.
Here’s what this means for you: The government has decided that its war on tax cheats is a multi-front conflict, ranging from overseas banks to the tax preparer around the corner. Simply put, it’s a bad time to be a tax cheat.
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Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact him at 866-IRS-PROBLEMS (866-477-7762) to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.
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July 26th, 2009 at 6:22 pm
As I have written on more than one occasion before, it is all a blatant out and out right lie. Barrack HUSSEIN Obama wants the tax cheats caught that he wants caught, he doesn’t want to touch the tax cheats he doesn’t want to touch.
That would include all those that support the Damocrat party and hire the likes of illegal immigrants or that support oroganizations such as Acorn.
Am I correct, or am I in error? It is my understanding that it is unlawful to take a deduction on a tax return for any illegal payments. Therefore by definition, it is illegal to pay an illegal immigrant. Therefore by definition, it is unlawful to take a deduction on a tax return any payments to or for any illegal immigrants.
I have been to many IRS Seminars/forums. Will be in Dallas this September. I have never been to a forum or seminar by the IRS or a State government that has advised preparers they should automatically not allow any deduction where illegal immigrants are involved. I have been to many IRS Seminar/forums. I have never been to a forum or seminar by the IRS or a State government that has advised preparers, they have an obligation to our Country to report to the local sheriff for deportation any illegal immigrants. Although that is the law of the USA.
How can Barrack HUSSEIN Obama, believe he wants the citizenry to think he wants to crack down on tax cheats when he hires them for very responsible positions including the person over the IRS?
August 13th, 2009 at 1:56 pm
He should start with his own appointees.
September 1st, 2009 at 1:48 pm
[...] This Wednesday, I will be appearing as an expert guest on Fox Business News to talk about some of the pressing tax problems taxpayers are facing due to the recent surge in IRS enforcements. [...]