If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Washington Post)   Snitches get riches   (washingtonpost.com) divider line 20
    More: PSA, IRS, whistleblowers, cops  
•       •       •

5086 clicks; posted to Main » on 05 Apr 2014 at 2:16 PM (16 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



20 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2014-04-05 02:17:32 PM
You are all to be audited. I will do the reporting of this.
 
2014-04-05 02:20:31 PM
And of course the IRS taxes those whistleblower rewards.
 
2014-04-05 02:28:34 PM
I don't know about the IRS, but snitching to the cops will never get you any reward money.
 
2014-04-05 02:33:39 PM
And all $53 million went to their defense attorneys.
 
2014-04-05 02:34:17 PM
This is a tough one.  On one hand, its nice that tax cheats are getting caught, and the payout vs amount collected seems to be fair and profitable.  On the other hand, it creates direct incentive to railroad potentially innocent people into having to pay elevated taxes so that the whistleblower can profit directly from the transaction.

This, combined with the IRS policy of charging the absolute maximum possible feasible amount when paperwork is "iffy" in terms of revenue vs expenditures, leads me to believe that people are going to be directly farked by this.

/Biased, because I've had the IRS rule that I had 10x my true amount of income in the past due to "insufficient" record keeping.  An admittedly self-created problem, but it was still pretty farked up and way outside what any truly reasonable person would have ruled.
 
2014-04-05 02:34:46 PM

Fissile: I don't know about the IRS, but snitching to the cops will never get you any reward money.


Tell that to Whitey Bulger.
 
2014-04-05 02:36:02 PM
Also reminds me of a scene in the movie "Anarchist Cookbook" in which Puck walks out of the FBI building saying, "I'm a narc, and an asshole. But now I was a relatively successful narc and asshole." He got a few hundred thousand dollars for turning in an anarchist.
 
2014-04-05 02:37:13 PM
I've got 99 problems but a snitch ain't one
 
2014-04-05 02:37:43 PM
The drawback to this is you have to find real tax cheats that screwed the IRS out of 2 million bucks.

Difficulty: anyone cheating that much on their taxes can lobby to get their cheating legalized or pay accountants and lawyers to make sure it's "cheating" and not cheating.

You'd basically need the dumbest rich person ever. I'd suggest starting with pro athletes.
 
2014-04-05 02:38:43 PM
Despite all of the protection laws, studies show that up to 90% of whistleblowers suffer from the act.
 
2014-04-05 02:49:56 PM
Yup, thats the America I was brought up to love. The America where the IRS can persecute certain opinions and people turn in their neighbors to the government.
 
2014-04-05 03:05:28 PM

Kevin Lomax: The drawback to this is you have to find real tax cheats that screwed the IRS out of 2 million bucks.

Difficulty: anyone cheating that much on their taxes can lobby to get their cheating legalized or pay accountants and lawyers to make sure it's "cheating" and not cheating.

You'd basically need the dumbest rich person ever. I'd suggest starting with pro athletes.


Yeah, that's kind of a big drawback. If only "cheating" meant "not paying taxes" instead of "illegally not paying taxes" then we could just email the IRS a list of every company that was incorporated in Delaware.

/but that'd just be silly, collecting all those billions of dollars in taxes
 
2014-04-05 03:13:16 PM
...and sneetches get beeches
 
2014-04-05 03:18:21 PM

Kevin Lomax: The drawback to this is you have to find real tax cheats that screwed the IRS out of 2 million bucks.

Difficulty: anyone cheating that much on their taxes can lobby to get their cheating legalized or pay accountants and lawyers to make sure it's "cheating" and not cheating.

You'd basically need the dumbest rich person ever. I'd suggest starting with pro athletes.


I'll tell you a tale from 10 years ago. I had started my own business after getting my license to do electrical work in Massachusetts. I didn't file taxes for 2003 and 2004. In 2005 I worked for a company for a short time and got a W-2. So I filed my taxes because I figured the IRS would know. So I did my taxes, added some income from my personal business and tried to write off my truck for the entire time I had been in business.

Well this set off the red flags in the IRS computing program and I was audited. Because I wasn't rolling in bucks, I decided the best thing to do was have the agent come to my small apartment for the audit.

First question he asked me was, "Do you believe that the information on your return is true and correct?"

I said, "No, I messed up and was trying to write off everything in this one year."

He said, "OK. I can understand that. What I hate is the people who claim they donated thousands of dollars to charity, then it turns out they didn't donate anything."

Because I was honest, he took everything I said after that as fact. He even helped me by letting me write off things like work clothing and tools even though I had no receipt.

All in all I had to pay about $10000 in back taxes for 2003, 2004, and 2005. They can only go back 3 years including the year you're audited. He told me he was pretty sure his supervisor would accept my returns because of the net gains to the IRS.

The point of my CSB is two-fold.

#1 I want people to fear the IRS a little bit less.

#2 Even a little guy can beat the IRS once in awhile.
#
 
2014-04-05 03:34:24 PM
"The report says the IRS received 9,268 whistleblower claims last year..."

"...the agency said Friday it paid out 122 awards."

Which equals 1.3%, whoop-de-doo.
 
2014-04-05 03:39:51 PM
The part of the article that got me was the part that it might take years to get the reward.  If I'm going to screw an employer or neighbor or family member over, I want the payoff now.
 
2014-04-05 03:49:32 PM

cherryl taggart: The part of the article that got me was the part that it might take years to get the reward.  If I'm going to screw an employer or neighbor or family member over, I want the payoff now.


Just take the cash from the register.
 
2014-04-05 04:14:04 PM
Advice to tax evaders:  Never, ever, ever, cheat on your spouse/SO.  Not even once.  Because turning you in to the IRS satisfies both the wronged spouse's/SO's desire for revenge, *and* it pays.  I would bet that half of the reports of tax evasion that the IRS gets are from cuckolded mates.
 
2014-04-05 04:27:06 PM
My advice pay your taxes and don't mess with the IRS. I had made a minor mistake on my taxes once and owed i think $500. well i was struggling at the time so I figured I'd just pay them back when i got a regular job. After awhile i kind of forgot about ii and then i got a letter saying I still owed. I think it was up to $700 with fees and penalties. Ok I should probably pay this but was still broke and figured the IRS wouldn't come after somebody like me for only $700. Then a month or so later my checking account was frozen all the money i had was taken and now had a negative balance. Yep the IRS froze it Seized my last $200 and then charged me for doing that on top of all the fees my bank charged me. I ended up having to get my dad to lend me enough money to cover it all. That $500 IRS bill ended up costing me over $1000. They will come after you for anything so just bite the bullet and pay up.
 
2014-04-06 07:56:00 AM
whistleblowers can claim awards if they provide information that helps the IRS collect more than $2 million in taxes, penalties and interest.

Hmm, I'm going to just start report every professional athlete. I'm sure there's more than a few out there cheating on or not paying their taxes.
 
Displayed 20 of 20 comments

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »






Report