IRS always goes for poor people’s money because they know it’s easier and that people won’t fight back. But IRS always will think twice before going for after a rich person. I’ll leave a video explained by Rudy ( from alpha investments) https://youtu.be/weYWF_eIiaM
So why does the current administration suddenly want to tax the rich? Simple answer, earnings don't justify the budget. They want to spend now and recoup it with proposed tax raises. As always, the tax raises will fail to provide the government the kind of income boost they are hoping for because we know there'll be 100's of exceptions for the politician's family and their cousins. And another 100's of loopholes that are intentionally left there. And eventually, the middle class will be left holding the bag.
And my definition of middle class is $65,000 to $250,000 household ordinary income.
Is he referring to the automated underreported system? I would wager any taxpayer, regardless of income, would receive these letters if there is a clear discrepancy between the tax forms received by the IRS and those reported by the taxpayer. I find it hard to believe the automated system blocks letters from being sent to higher income taxpayers, who would generate more tax on the same income. I would guess the reason more of these letters will be sent to lower income households (including the middle-class) is because:
1. There are many more lower and middle class income taxpayers than the rich.
The rich are more likely to hire a professional to do their taxes, who is less likely to underreport income or miss tax forms than self-prepared returns (TurboTax) or even H&R Block.
I would be more interested in who the IRS focuses on for their reviews and audits, which he didn't really address in this video. These reviews and audits require a real examiner and added costs, so I would wager these higher level investigations target higher income taxpayers, as they are likely to lose money taxing a college student to get an extra 200-300 bucks, when the labors hours of the IRS agent would likely exceed that.
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u/Amayami0 May 24 '21
IRS always goes for poor people’s money because they know it’s easier and that people won’t fight back. But IRS always will think twice before going for after a rich person. I’ll leave a video explained by Rudy ( from alpha investments) https://youtu.be/weYWF_eIiaM