Don’t Wrestle With The IRS Robots
I think the IRS should adopt a new policy on frivolous refund claims. If a taxpayer is looking for a refund of withholdings that are out of proportion to positive income, do nothing. After six months the really determined ones can sue in federal district court or the court of claims, which is a lot harder than the Tax Court. That would make it not an IRS problem so much as a problem for the DOJ Tax Division. The Tax Court would probably appreciate the lessened pressure on its docket.
I’m sure there is a reason why my plan doesn’t work, but it is a nice thought experiment. Any readers who know why this is a bad idea can send me their thoughts which I might include in an update.
TIGTA Documents The Wreck Of Tax Compliance
A possibly apocryphal tale I heard from an IRS criminal investigator was about an old timer who was criticized for not keeping up his firearms proficiency. His answer was that he had put away a lot more guys with his pencil. The technology is different, but what will convince people to be compliant is a lot more actual action dosing out painful but moderate consequences, not the occasional dramatic arrests that attract media attention.
Regardless of all that, pay your taxes. It is the right thing to do.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.