Going Concern tells us that David Cay Johnston Would Like To See More News Articles About More IRS. He thinks the reduction in IRS funding from the sequester should be treated as a bigger deal.
Fine. It’s important. Let’s expand our discussion and talk about how the IRS is spending the money it already has. For example, it is spending lots of money to go to court to expand its power over tax preparers. It is spending money lobbying Congress to overturn the court decision thwarting its preparer regulation power grab. If it succeeds, it will spend millions imposing busy work requirements on preparers that will cost taxpayers many millions more while lining the pockets of the big franchise tax prep firms.
It is spending money prosecuting a widow who tried to come clean on foreign bank accounts she inherited. It spends money beating up on honest taxpayers who innocently run afoul of obscure foreign account rules.
While it spends money on these things, it sends billions of dollars of your tax money to identity thieves each year. It sends over $10 billion annually to earned income tax credit scammers. It spends very little to help the honest taxpayers whose identities are stolen, and what it spends isn’t very effective.
So yes, let’s talk about IRS spending. And let’s talk about what they should be spending it on. Spending more on not sending money to thieves would be a good start.