Relax, Everything is Going to be Okay!

[BigHornRam]

Yeah, it works both ways!

See. They already know what I'm supposed to pay with the software they already have. No grand conspiracy there.

 

[SAJ-99]

There’s specific system designed to look for non-filers. Govt in general does a horrible job of sharing data across agencies, but when they do it can be pretty powerful in finding things like non-filers. It’s a rare person who doesn’t interact with govt in some capacity.

Agree. But that isn't the reason. In the release...

These are all cases where IRS has received third party information—such as through Forms W-2 and 1099s—indicating these people received income in these ranges but failed to file a tax return. Without adequate resources, the IRS non-filer program has only run sporadically since 2016 due to severe budget and staff limitations that didn’t allow these cases to be worked. With new Inflation Reduction Act funding available, the IRS now has the capacity to do this core tax administration work.

 

[BigHornRam]

Totally off subject but the state if Illinois took over two years to pay us back our 1k return. I wonder how that'd play out the other way around...

Your fault for living there.....

 

[Wildabeest]

Totally off subject but the state if Illinois took over two years to pay us back our 1k return. I wonder how that'd play out the other way around...

Not well. Balance + interest + penalties.

 

[WildWill]

Not well. Balance + interest + penalties.

View attachment 362882

One of my dad's favorite movies and quote.

 

[Wildabeest]

See. They already know what I'm supposed to pay with the software they already have. No grand conspiracy there.

For certain individual line items, yes. But not necessarily your entire return unless it’s very simple and doesn’t involve things like itemized deductions. In your particular case, they might issue you a check for incorrectly entering your W-2 income too high, but then later come back and try to collect money if they think you exaggerated your charitable contributions.

 

[Rie Bread]

Totally off subject but the state if Illinois took over two years to pay us back our 1k return. I wonder how that'd play out the other way around...

You live in south or central? God help you if your on the north end

 

[Nick87]

You live in south or central? God help you if your on the north end

The north end.

 

[Nick87]

You live in south or central? God help you if your on the north end

If your gonna live here this is the area to make the money.

 

[Dave N]

Your fault for living there.....

You're not wrong.

 

[Bonasababy]

Where do you make shit up from?

https://www.gartzmantaxlaw.com/blog/2020/02/how-the-irs-uses-automation-to-review-tax-returns/#:~:text=The%20IRS%20uses%20a%20computerized,return%20received%20by%20the%20IRS.

"While the IRS does not have the manpower that it had 20 years ago, there are certain taxpayer actions that can trigger an audit by the Internal Revenue Service. As technology continues to evolve at a significant rate, the IRS has increased its use of automated programs to identify tax returns that may deserve further inquiry and inspection. The IRS uses a computerized process specifically designed to identify irregularities in tax returns. Known as Discriminant Information Function (DIF), it scans every tax return received by the IRS.

The task of detecting unreported income is a difficult one. The IRS has implemented different efforts to address issues with unreported income, including the Information Returns Program (IRP), the Economic Reality Ratio (ERR) and the Unreported Income Discriminant Function (UI DIF).

The definition of “unreported income“ is the difference between income reported voluntarily and income that should have been reported – unreported income results in lost income and self-employment taxes.

The automated DIF process uses a computer to mathematically determine the audit potential of returns, which are then manually screened to determine the scope of an audit and the information needed to satisfy any audit. Involving a mathematical concept known as “Discriminate Function,” DIF analyzes income tax returns for their potential to be examined or audited.

This technique relies on the development of formulas based on IRS data, which are programmed to classify returns based on weights assigned to certain basic characteristics of the returns. For each return processed by the IRS, the number of weights is added to obtain a composite score, which is ranked in sequence from highest to lowest. The higher this composite score is, the higher the probability of significant tax anomalies. The highest scored returns are then “made available” for audit.

DIF monitors duplicate information while comparing a return to those of other taxpayers who earned approximately the same income – any red flags generated through the DIF process, prompt review by human agents.

The IRS is simply attempting to determine the likelihood that a taxpayer is under-reporting income or over-reporting deductions. A taxpayer’s DIF score increases from deviations from the norm. For example, if a taxpayer has total income of only $50,000, but lives in a residence worth $500,000, in an exclusive area with five children, the possibility of an audit is significantly increased, since this scenario will increase a DIF score. Another example of conduct that would cause a higher DIF score is a taxpayer claiming $15,000 in charitable deductions"

Some of us actually pay attention and have a memory.

Republicans’ IRS cuts to add $24 billion to the deficit, finds CBO | U.S. Senate Committee On The Budget

The Official U.S. Senate Committee On The Budget

www.budget.senate.gov

Defunding the IRS Would Cost Taxpayers

As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the IRS costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While...

itep.org

 

[Rie Bread]

If your gonna live here this is the area to make the money.

Spent a summer working on wind turbines around Bloomington

 

[Nick87]

Spent a summer working in wind turbines around Bloomington

Couple hours from me yet. That's @Dave N territory more so.

 

[TOGIE]

I laugh any time I hear an indication that there is a "plan". There is no plan.

Yesterday

Trump admin seeks to put 443 federal properties, including FBI and DOJ headquarters, up for sale

More than 440 federal properties in multiple states are being put up for sale, according to a list put out by the General Services Administration.

www.foxbusiness.com

Today

Trump admin takes down list of 443 federal buildings targeted for sale after backlash

The Trump administration Wednesday removed a directory of 443 federal buildings it had planned to list for sale the previous day.

www.usatoday.com

i think a lot of folks forgot that this is exactly what the first term was like.

the flip flop machine. and each day a new person resigned or was fired.

i think covid kinda blurred us out of remembering how utterly $*)Q!#@$ chaotic his first term was.

 

[BigHornRam]

For certain individual line items, yes. But not necessarily your entire return unless it’s very simple and doesn’t involve things like itemized deductions. In your particular case, they might issue you a check for incorrectly entering your W-2 income too high, but then later come back and try to collect money if they think you exaggerated your charitable contributions.

Don't recall what the issue was. With no mortgage interest to deduct, I use the standard deduction and don't itemize. Being self employed added a little complexity to my return, however.

 

[Dave N]

Couple hours from me yet. That's @Dave N territory more so.

Bloomington is 60 miles south of me.

 

[BigHornRam]

Some of us actually pay attention and have a memory.

Republicans’ IRS cuts to add $24 billion to the deficit, finds CBO | U.S. Senate Committee On The Budget

The Official U.S. Senate Committee On The Budget

www.budget.senate.gov

Defunding the IRS Would Cost Taxpayers

As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the IRS costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While...

itep.org

With all due respect, Sheldon is a kook.

 

[SAJ-99]

With all due respect, Sheldon is a kook.

Maybe, but OMB came to same conclusion.

 

[Bonasababy]

With all due respect, Sheldon is a kook.

How many references saying the same thing will it take then? I can find lots more!

 

[Wildabeest]

Tangential impacts of the global game of chicken going on right now. We’d bid on a project in Canada and were notified today we would not be considered due to new procurement policies that exclude US companies.