The Chairman’s Report September 29th, 2023

  • by:
  • Source: FAIRtax
  • 09/29/2023

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MEET YOUR NEW IRS AUDITOR

In life, when we go to a “professional” to get work done, we look to find people who have a good reputation for reliability and good work.

If our car needs repair, we look for a mechanic who is skilled in repairing our type of car and will not take advantage of us.

If we need to see a dentist, we look for one who is known to provide good service.

If we have a medical problem, we look for a doctor who specializes in treating our particular condition and who has a record of getting good results.

So, what does it say about the IRS when they have to hire people who are really not trained in tax accounting or very much in accounting at all?  They are reduced to hiring people who, usually because of their college degree type, can’t find a job making $50,000 per year with the hours, days off and other benefits a federal government job provides.

Learn.org published an article entitled How Can I Become an IRS Auditor?  They included data from the IRS.gov site.

Here are some of the points:

  • The different types of Internal Revenue Service (IRS) agents who conduct tax audits include tax examiners, internal revenue agents and tax compliance officers. 
  • As a tax examiner, you'll review simple tax filings from individuals and small businesses. Your responsibilities will mostly include inputting tax returns and confirming the accuracy of the information they hold.
  • Internal Revenue agents work with much more complicated tax filings. As an entry-level Internal Revenue agent, you'll audit small businesses, educate taxpayers about the tax code and assist businesses and organizations in ensuring tax compliance.
  • If you're an experienced accounting professional, you could work as a senior-level Internal Revenue agent. In that case, you'll audit the tax returns of large corporations, businesses and other complex entities. You'll determine if these entities' tax returns comply with the Internal Revenue Code, and you'll deal with complicated tax issues, including tax shelters and corporate reorganizations. You could also specialize in examining specific tax issues, such as employment tax, financial products and international transactions.
  • If you'd like to work as an IRS tax examiner, you must hold a bachelor's degree or have at least one year's experience as an accountant, tax analyst or bookkeeper. According to the IRS, to be eligible to apply for an entry-level Internal Revenue agent position, you must be a U.S. citizen who holds a bachelor's degree or has an equivalent amount of work experience along with 30 semester hours of coursework in accounting. 
  • To qualify as a tax compliance officer, you should have a bachelor's degree in business or a related field with six semester hours of coursework in accounting or be able to pass a test that measures your proficiency in accounting.
  • According to the IRS, there are several ways to qualify as a senior-level Internal Revenue agent. You could have a bachelor's degree or higher in accounting with at least 30 semester hours of coursework in accounting, be a Certified Public Accountant (CPA) or have educational and work experience that is equivalent to a bachelor's degree in accounting. Additionally, you must have a minimum of one year's experience in auditing or accounting.
  • As an IRS auditor, you'll enjoy a 40-hour work week that allows you to have a good work-life balance. All entry-level positions will afford you great advancement opportunities. Additionally, as a federal government employee, you'll receive great health insurance benefits, a retirement fund and tuition assistance.
  • The median salary is $55,640, but highly experienced accountants can earn up to $125,000.

CONCLUSION

The Internal Revenue Code (IRC) is extremely complicated.  Tax professionals who work for large corporations and high-income earners are paid between $400 and $1,500 per hour.  That is because they have spent years dealing with the tax code and constructing tax strategies that have withstood court challenges.  

These are the people the IRS agents will come up against when they audit the people making over $400,000 per year or huge corporations or partnerships.  When you have a government worker who goes home at 5pm and has a heavy case load, how successful do you think these bureaucrats will be?

This problem is even worse when new agents try to audit small businesses.  These businesses will be represented by tax preparers who have handled many similar audits and have a good understanding of the tax code and the rules.  They will know much more about tax matters than some newly hired IRS agent who may have a college degree in History or Art and a few hours of basic accounting.

These new agents know that they were hired to catch the cheaters who are illegally evading their taxes to the tune of over $1 trillion a year.  The problem is that people who are cheating do not self-identify.  They don’t label their return—“We cheated.”  Quite the contrary.  They do everything they can to make their returns look legitimate.

How will the new agents collect money from the people they audit if they don’t have the skills and experience needed to outwit these skilled an experienced cheaters?  They will use the time-tested method that the IRS has used since the passage of the first income tax law in 1913 —they will assert a tax deficiency whether one actually exists or not.  

The IRS agents know that they are being paid by the government.  They also know that fighting an IRS assessment is a costly proposition.  The new agents will learn rather quickly from their colleagues that they really have a license to take whatever they want, whether it’s actually owed or not.

They know that many taxpayers will find that it costs more in both time and money to fight an unjust assessment than it would to just pay what the IRS is demanding.  They know that many tax professionals will advise their clients to just go ahead and pay it because it’s not worth the time and expense it would take to put up a fight.

So, the taxpayer caves in and makes the payment.  He’s no doubt rather upset about being extorted, but he also knows that it’s to his advantage to settle the case quickly before the auditor comes up with even more alleged tax deficiencies.

You say that this isn’t right.  You are correct, it is not right.  However, very little about the corrupt and incomprehensible federal income/payroll tax is fair or right.

Unfortunately, just about any tax practitioner will tell you that that’s standard operating procedure for many IRS agents.  Now some are good and honest.  But all of them are under pressure to perform.  The IRS expects an audit to produce additional tax revenue and the best auditors are the ones who bring in the most money.

How do we stop this legalized extortion?   We replace the income/payroll tax system with the FAIRtax.  

When we pass the FAIRtax there will no longer be an IRS that audits and extorts taxpayers.

There will be some people in D.C. who will be needed to monitor the FAIRtax collections from the states. 
However, the IRS, 260 million tax returns and countless wasted American taxpayer hours spent trying to comply will be gone.

The only reason to have the complex income/payroll tax system is to give jobs to bureaucrats, give D.C. control how much of our incomes we get to keep and to provide politicians an ATM machine to finance their campaigns.  

Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations?  The only way that they will is if the rest of us demand it!

Congress and D.C. know that there is a better alternative to the present system—the FAIRtax.

Instead of spending time and money doing endless hours of paperwork that don’t create anything of value to yourself, your family or the nation, why not eliminate the unnecessary waste?
   
The FAIRtax transfers power from the government and bureaucrats to the people.  We, not the bureaucrats and D.C., decide how much tax we pay.

Isn’t it time to end this ludicrous tax collection system and the IRS?


When the FAIRtax is enacted, there will be no need to fear being audited by the IRS or raided by armed IRS agents because there will be no more IRS.  

There is going to be a vote on the FAIRtax in the House of Representatives.  McCarthy and the other elites didn’t want it, but it was forced on them.

We now have the opportunity to force all Members of the House to show where they stand.  They can:

  • Vote for the present income/payroll tax system or for the FAIRtax.
  • Support the corrupt income tax and the IRS or eliminate it.  It can’t be any simpler than that.
  • Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
  • Support the largest transfer of power from government to the people, the FAIRtax, or not.

If Members think that the FAIRtax needs to be changed, then they can propose the change.  Don’t let them reject the entire bill because it has a “flaw” that can be easily addressed.  

Please stand with us and demand that your representative support a much fairer, much simpler and much more efficient way to fund the government—the FAIRtax!

The FAIRtax doesn’t pick winners and losers.  Because it taxes spending, not earnings, the FAIRtax lets everyone save for their retirement tax free.  

The FAIRtax will allow us to TAKE BACK CONTROL.

The income/payroll tax system is broken and no longer working—we can’t repair it but we can replace it with the FAIRTAX!
 
Join us and TAKE BACK CONTROL OF OUR COUNTRY AND OUR LIVES—NOT WITH BULLETS BUT WITH THE ELIMINATION OF ONE OF THE BIGGEST THREATS TO OUR LIBERTY AND ECONOMIC PROSPERITY—THE INCOME/PAYROLL TAX.
 
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
 
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
 
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your children's future:
 
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
 
WHAT CAN EACH OF US DO? 
 
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!
 
TAKE BACK CONTROL!   Help us PASS THE FAIRTAX!
 
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