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The IRS to hire 87,000 new agents. Who will they go after?

2259 Views 80 Replies 21 Participants Last post by  Heisenburger
Most likely the gig economy workers.

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First: Didn't WaPo and Time hear the Yellen/O'Donnell interview from earlier this year? (the applicable segment is about 10 minutes into the above video). In it, both Yellen and the IRS want all banks to report any bank account that have more than $600 annually going through it. Tracking a $600 annual movement through a single bank account isn't really aimed at the corporations or billionaires, yes? It's aimed at middle and lower classes.

Second: Again in that same segment, didn't WaPo and Time hear Janet Yellen say that there's going to be an estimated $7 trillion short fall in tax collection over the next ten years? There's the reason for 87,000 new IRS agents. The majority of which will be used for enforcement. In all, that comes out to a little more than 1,700 new IRS agents per state. They'll have to be doing something in order to keep their new jobs - like chasing down the people making a little extra in the gig economy.

Third: WaPo said that the middle and lower income brackets are already covered by automation. If true, then why hire 87,000 new IRS agents, or about 1,700 agents per state? They'll have to be chasing the low hanging fruit first in order to keep their new jobs. And yes, we're the low hanging fruit. Keep in mind that the IRS is also planning to use about $5 billion to better their automation. That kind of blows WaPo's theory out of the water, yes?

Fourth (and very important): It's ALREADY LEGAL for the corporations and billionaires to pay a less percentage of their income than the middle class and lower class. Thank you Congress. The rich have teams of tax attorneys and accountants on their side. The rest of us are the low hanging fruit in point three.

Fifth: CNN saying that Yellen directing the IRS not to increase the chance of an audit means don't change the current ratio of who gets audited (between all classes). Keep the current balance as best as possible. It doesn't mean don't audit the middle and lower classes and then don't go after their money.

Look, the government needs more money like Janet Yellen said. And just like they did 90 years ago when FDR implemented the bank holiday, they're going to be coming to collect.

Be careful out there. Things are about to get interesting. Protect yourselves.
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This Yahoo News article gives more detail of what the IRS CI division does, which is where most of the 87,000 new IRS agents will be going. The types of crimes talked about aren’t crimes generally associated with corporations or billionaires, but rather with lower classes.

“The “Major Duties” listed in the job description included “a level of fitness necessary to effectively respond to life-threatening situations on the job,” and being “willing and able to participate in arrests, execution of search warrants, and other dangerous assignments.”
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That's not what was said. If you make less than $400k but are seriously committing tax evasion you could be in big doo doo. But there will be no attempt to "increase" the focus on those making less than $400k.
Yes and no. If you’re doing side gigs and are not reporting the extra income, you could be audited if the IRS finds out, regardless of your income.

Frankly, I don’t see how the IRS can maintain present audit levels for the lower classes (under 400k) given the amount of side gigs not reported. Remember, Janet Yellen is looking for 7 trillion dollars.

Back in the 30s, 40s, 50s, 60s, 70s, and into the 80s, the last time they were searching for money, the IRS was into everyone’s business. We were all guilty until proven innocent during an audit. I can remember many bad stories from that time period.

If I remember correctly, part of the Reagan Revolution was for a kinder and gentler IRS. If true, then this aspect of the Reagan Revolution is over. The IRS is looking for money again.
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This job classification will make up a very small percentage of the overall hires. The need for this type of enforcement goes more to drug dealers and other serious crimes, not to ordinary citizens. Btw, that piece comes from National Review via Yahoo. The intent is to make it appear that ordinary people will be victimized by this. Not a chance; this type of enforcement goes only to serious criminals. Remember how they nailed Al Capone?
No, the majority of hires goes to enforcement. It was in the video.

Yes, they are going to go after criminals too. That was in the Yahoo article.
Better have that mileage log (corresponding with the Schedule C) in the glove compartment.
And your taxes paid up to date
Just spitballing.

Gig workers like us, if they get a 1099 for more than (say) $50,000 then the IRS may ask them to fill out the required form via a computer program.

But if you're a free lancer making a $150k as a writer with little overhead then yeah, you better file taxes. If you're an influencer on YouTube etc making over six figures with little cost, then yeah, you better file taxes. If you're making a lot of money from doing soft porn, then yeah, you better declare and file.

But they're really after the bigger fish. While they may be 'ordinary' citizens if they're scamming Medicare for $millions you better believe the IRS want to know.

There's a lot of money laundering for various fraud that uses Crypto exchanges etc. IRS want to find these guys.

Just curious when did JY say she was looking for 7 trillion dollars? That sounds made up to me.
No need to name call.

You've already been told in this discussion where to look for JY and her stated need for $7 trillion dollars. If you don't want to look at that data, then that's your prerogative. What's not acceptable in a discussion is you refusing to look at the supplied data (dismissing) and then coming back here and name calling. That's no longer a discussion. That's something else.

"Gig workers like us" - there's more to the gig economy than U/L driving as you know. But, your definition of 'gig worker' may need to be re-examined. It's a bigger field than you may currently realize. Not every 'gig worker' in the gig economy gets a 1099. Fact. A lot of gig work (or side hustle) is done in cash, barter, etc. And regardless of which economic class you're in, the IRS will come after you if you didn't declare all of your income (again, as you already know).

How can the IRS catch that? A story from the 70s: Company A does work for company B. The IRS audits company B and wants to verify that company B paid company A for work done (note: this is where the extra IRS agents will come in play today - going site to site and actually looking - as they used to back in the 30s through early 80s).

So the IRS goes to company A to look for that specific transaction and finds nothing. No mention of services rendered. Turns out an executive at company A cashed the check, but pocketed the money instead. Company A now gets audited too. (I know the people who were involved in this from company A). My point here is these audits had a way of snow balling back in the day. And it will happen again since we now have 87,000 new IRS agents actually tasked with finding hidden money. History repeats. Also, this snowball effect worked between individuals back then too. One declared, the other didn't.

Other than that, I agree with you that they will be coming after crypto, real estate flippers, sellers, etc, etc. Our disagreement seems to be with the classes. The Treasury needs the money. And they are going to look at everyone - if only to get an idea of what's out there (hidden). Lower classes first. They can't defend themselves.
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The Red Wave is looking a bit shaky, especially for the Senate. Whenever a new President is elected the opposition party ALWAYS wins the mid-terms in the House so that's to be expected..

In AZ you have half the Republicans loving Lake while the other half of Republicans think she's a nut case. Should be close, I suspect.
The Trump endorsed candidates did well in the GOP primary elections overall. It’ll be interesting to see how they will fare in the general elections.
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They’re coming after you and me! Trump was just in the way!🇺🇸

Hopefully the red wave will defund the IRS!
No defunding of the IRS, I’m afraid - not while we have a 30 trillion dollar national debt to payoff, in addition to the 7 trillion dollar projected short fall that Janet Yellen was talking about.
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Most likely the gig economy workers.

More proof of who the IRS will be targeting first:

A lot of fraudulent claims (more than $60 billion worth) apparently were made during the lockdown.
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I read that. Anything for a good show.

I've had fun reading about those they have caught, people who had a party of a time until they were sent to prison for ten years.
Low hanging fruit first
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