U.S. IRS audited fewer wealthy Americans in 2013 | Reuters

Makes sense to me.

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Jim

Do tell.

Around here, the ones that don't pay anything are the ones cheating.

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Jim

Did you read it? Who do you think they are that file " individual tax returns reporting no gross income". Not even 'net income'. Gross. These are not peeps who got creative with deducting the yacht and lake home against salary. These are the long term unemployed, no longer even counted in unemployment statistics anymore because UI ran out long ago. The only reason they have to file is probably to deal with things like the penalties while liquidating their retirement accounts to survive and manage the demise. Otherwise why even file? No where did it say they didn't pay taxes. Not sure if penalties on early withdrawal are subject to the standard deduction.

I interpreted it differently.

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Jim

What is the sense of auditing the wealthy? They can afford to use and engineer situations that legally omit their normal taxation amounts substantially. So why should they cheat except for the excess greed or laziness aspect of setting things up by some. Many poor people cheat as otherwise they probably could not exist. There is just too much disparity between the top and bottom.

The average guy has far fewer things to participate in by the systems design. Or at least sensibly usable to him. Legal tax avoidance costs money and saves more for those in positions to take advantage of it. This situation is by no means exclusive to the United States.

Although I have a suspicion that out of self interest many bills have been passed to favour those with money in North America than other places. Too many politicians in North America are too well heeled financially to expect otherwise. Simply stated if the bulk of politicians where poor it is pretty obvious where the load would shift to.

I don't trust none of em.

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Jim

Makes you wonder, how do those poor people pay to rig the system, lawyers and accountants aren't cheap?

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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue).

The IRS goes after the middle class suckers who have a bit of money but can't afford the lawyers and accounts the rich have.

Nonetheless, the top 25% income bracket pays about 90% of all income tax revenue, and 50% pay no income tax at all after all the deductions for being poor in America. It's that remaining 25% that the IRS is intending to bleed dry before they're shoved into the lower 50%.

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“Never attempt to teach a pig to sing; it wastes your time and annoys the pig.” ― Robert A. Heinlein

You chump. Nice sadistics. Now tell us for realz what % of all income 'the top 25% income bracket ' reels in and how that relate to all taxes paid. You are sad and useless. Go out back and shoot yourself.

Thing you missed is he's pretty much correct regardless of what the top quarter 'reels' in.

Except his point was not the number but the false concept he tried to float, that is what I called him on. That whole slant thrown out by the ignorants is poo. Who the Hail is supposed to pay the taxes, the people without money?

It’s a trend started during the Clinton years, iirc. IRS based research found it far more profitable to go after lower income and small businesses than bigger fish simply because the IRS can return more $$ per hour spent on that group than with those who can afford accountants and tax attorneys. Plus there are 10s of thousands that fit in the easy money for the IRS category compared to merely thousands who make a lot more and dodge taxes with professional help.

The trend has been ongoing for around 20 years.

There are a lot of folks that pay no taxes. I know a great many of them. All of them are multi-millionairs. It all depends on how your income is structured and the why you have it invested. Do it right with the help of CPA's that know what they are doing and you, too, can make a million a year and pay no taxes.

And none of these folks cheat or hide their money. They take enough to live on, invest the rest, and invest in areas that allow for tax breaks that drive their taxable income to zero.

I think this is why the IRS is doing fewer audits of the wealthy among us. The wealthy finally broke down and hired some real brains to help them instead of trying to be the smartest person in the room and thinking they could out fox the IRS.

This is a lot easier than you might think. It all comes down to: The US Government wants you to invest in America and is willing to make it worth your while by giving you tax incentives to do so. Not tax breaks, tax incentives. They are there for the taking and any CPA can help you out with this.