- Sep 14, 2011
- 63,947
- 9,979
- 2,040
How the IRS drives taxpayers crazy - Jan. 9, 2014
Accidental Tax Break Saves Wealthiest Americans $100 Billion - Bloomberg
Video at the link.
Any taxpayer who's gotten into a tussle with the IRS over an audit, a delayed refund or a case of identity theft may be heartened by a new report to Congress on Thursday from the National Taxpayer Advocate.
Nina Olson, whose office represents the interests of taxpayers, identifies the 25 most serious problems facing taxpayers today.
Near the top of her list: The IRS "desperately" needs more funding to do its job.
The agency's funding has been cut by about 8% since 2010, including an 87% drop in its training budget. Its full-time personnel have been reduced by nearly 8,000 people over the same period.
The government shutdown in October and the onset of automatic spending cuts known as sequestration haven't helped matters.
And all the while, Congress has greatly expanded the agency's responsibilities -- for instance, it plays a key role in the administration of Obamacare.
As a result, Olson notes, the IRS last year was only able to respond to 61% of taxpayer calls received, and 47% of correspondence. It has also reduced or eliminated taxpayer services at walk-in sites around the country.
Going forward, the agency will only respond to "basic" tax law questions from January through April. So much for those who file tax returns at other times of the year.
Related: IRS paid $3.6 billion in fraudulent tax refunds
Bill of rights: Another big problem Olson identifies is the lack of a formal, consolidated taxpayer bill of rights that both IRS employees and taxpayers are educated about.
There are "dozens" of such rights scattered throughout the U.S. tax code, she noted. For example, taxpayers have a right to confidentiality and to challenge an IRS position.
Accidental Tax Break Saves Wealthiest Americans $100 Billion - Bloomberg
Sheldon Adelson makes no secret of his disdain for the estate tax.
How many times do you have to pay taxes on money? the casino magnate asks, leaning on a blue cane on the cobblestones of Wall Street on a crisp October morning.
A gravel-voiced man whose accent recalls his blue-collar Boston roots, Adelson, 80, has just rung the bell at the New York Stock Exchange. Shares of his Las Vegas Sands Corp. are at a five-year high, making him one of the worlds richest men, worth more than $30 billion.
Federal law requires billionaires such as Adelson who want to leave fortunes to their children to pay estate or gift taxes of 40 percent on those assets. Adelson has blunted that bite by exploiting a loophole that Congress unintentionally created and that the Internal Revenue Service unsuccessfully challenged.
By shuffling his company stock in and out of more than 30 trusts, hes given at least $7.9 billion to his heirs while legally avoiding about $2.8 billion in U.S. gift taxes since 2010, according to calculations based on data in Adelsons U.S. Securities and Exchange Commission filings.
Video at the link.