{"id":17900,"date":"2023-01-05T21:11:58","date_gmt":"2023-01-06T02:11:58","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=17900"},"modified":"2023-01-05T21:11:58","modified_gmt":"2023-01-06T02:11:58","slug":"bidens-bloated-irs-will-skewer-taxpayers","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2023\/01\/05\/bidens-bloated-irs-will-skewer-taxpayers\/","title":{"rendered":"Biden\u2019s Bloated IRS Will Skewer Taxpayers"},"content":{"rendered":"
\n

Biden\u2019s Bloated IRS Will Skewer Taxpayers<\/a>\"\"<\/a><\/h1>\n

by James Bovard<\/a><\/span><\/span><\/p>\n<\/header>\n

The Internal Revenue Service is perhaps the ultimate sacred cow in Washington. It is the \u201cgoose that lays the golden eggs\u201d for the city\u2019s power and prestige, delivering trillions of dollars to politicians to work miracles (or at least get reelected).<\/strong> When criticism erupted over the 87,000 new revenooers to be hired thanks to Biden\u2019s Inflation Reduction Act, Washington\u2019s Defenders of Correct Thinking rushed to the ramparts.
\nThe media goes to bat for the IRS<\/p>\n

Washington Post columnist Dana Milbank, in an article headlined \u201cAnother Republican Lie is Born,\u201d caterwauled that Republicans\u2019 anti-IRS rhetoric is one of the \u201challmarks of authoritarianism\u201d and justified Biden\u2019s condemnation of Republicans for \u201csemi-fascism.\u201d Post columnist Joe Davidson fretted that \u201cattacks on the IRS\u201d are part of Republican efforts \u201cdelegitimatizing government.\u201d Another Post article warned that Republicans are \u201cputting federal workers in danger\u201d by \u201crepeating baseless claims\u201d about the IRS. A Post purported humor columnist did a piece headlined, \u201cFarewell, Mother I am off to join the IRS army!\u201d sneering at baseless fears about Biden weaponizing IRS agents.<\/p>\n

\u201cBaseless?\u201d At the time the Inflation Reduction Act passed, the IRS was advertising for \u201cspecial agents\u201d who must \u201ccarry a firearm and be willing to use deadly force, if necessary\u201d during \u201cexecution of search warrants, and other dangerous assignments.\u201d The IRS had recently made massive purchases of new firearms and ammunition. The job notice declared: \u201cNo matter what the source, all income earned, both legal and illegal, has the potential of becoming involved in crimes which fall within the investigative jurisdiction of the IRS Criminal Investigation.\u201d<\/p>\n

Rep. Thomas Massie (R-Ky.) observed, \u201cThe IRS has never pointed a gun at a billionaire or his employees, so why does the IRS need 87,000 new agents, AR-15s, and 5 million rounds of ammunition? They\u2019re not gunning for billionaires or their bank accounts.\u201d<\/p>\n

Shock brigades of Fact Checkers rushed to rescue the IRS\u2019s reputation. Reuters announced that it is \u201cfalse\u201d that the IRS \u201cis hiring 87,000 new armed IRS agents\u201d because only a couple thousand IRS agents carry firearms. Similarly, an Associated Press \u201cfact-checking\u201d report derided as \u201cfalse\u201d the allegation that \u201call new employees that the IRS intends to hire \u2026 will be required to carry a firearm and use deadly force if necessary.\u201d Since not all IRS new hires will be heavily armed, it is \u201cmisleading\u201d to pretend that any danger exists.<\/p>\n

Controversy also swirled about a film clip of an IRS recruiting program on college campuses. A clip from Utah shows students putting on flak jackets and readying toy guns and handcuffs for \u201ctaking down a landscape business owner who failed to properly report how he paid for his vehicles.\u201d \u201cFirst they came for the tulip bulbs\u2026.\u201d<\/p>\n

Associated Press Fact Checkers complained that the video is \u201cbeing misrepresented to falsely claim it shows a new force of IRS special agents being trained as part of agency expansion efforts.\u201d But it is a recruiting video for college students that shows how they will be trained and use their power as IRS agents.<\/p>\n

Since not all IRS employees will be carrying Glocks or AR-15s, Americans should presume that every IRS employee is a well-meaning civil servant waiting to assist people tormented by convoluted IRS instruction booklets. And it won\u2019t matter if the new hires abuse their power. An IRS \u201cenforcement operation\u201d won\u2019t count as a raid unless agents shoot at least three people. And then it still won\u2019t matter because anyone who is gunned down will be labeled a suspected tax scofflaw. Regardless, Americans should presume that the IRS is actually less aggressive than a Girl Scout cookie-selling campaign.<\/p>\n

There were plenty of \u201cIron Fist Bellwethers\u201d last year when Biden first announced plans to vastly expand the IRS. The Washington Post reported that \u201cthe single biggest source of new revenue in the plan comes from dramatically expanding the clout of the nation\u2019s tax agency.\u201d Slate reported, \u201cBiden wants to fund a massive upgrade to the American welfare state by making the IRS great at audits again.\u201d And there aren\u2019t that many billionaires to go around to finance all the schemes that Team Biden favors.<\/p>\n

While Fact Checkers zealously squelch nitwit comments from random dudes on Facebook, they are ignoring far bigger howlers from the White House. On August 19, the White House promised that \u201cNo one making under $400,000 per year will pay a penny more in taxes\u201d thanks to the Inflation Reduction Act. Team Biden effectively insists that \u201cthose who have nothing (or at least no income) to hide have nothing to fear.\u201d According to Sen. Ben Cardin (D-Md.), \u201cIf you\u2019re not cheating on your taxes, you have nothing to worry about.\u201d But the Joint Committee on Taxation estimated that \u201cbetween 78% and 90% of the estimated additional $200 billion the IRS will collect [over the next decade] will come from small businesses making less than $200,000 annually,\u201d the New York Post reported.<\/p>\n

Biden and his media allies pretend that the federal tax code is as lucid as the Ten Commandments and that depravity and\/or iniquity are the only reasons people underpay taxe<\/strong>s. But Americans are confounded by the four million words in the tax code and by the IRS\u2019s failure to answer more than 90 percent of phone calls from taxpayers. Did the IRS need an $80 billion bribe to answer the phones? Actually, only 4 percent of the new $80 billion in funding will be devoted to customer service while 58 percent will go to turbo-charge enforcement.<\/p>\n

IRS a law unto itself<\/p>\n

Biden is acquiring a new army of IRS enforcers at the same time the agency obliterates unlucky taxpayers with deluges of penalties \u2014which have increased tenfold since the 1950s. Sen. David Pryor (D-AR) complained that the IRS used penalties \u201cas a weapon, as a whip over the innocent and the guilty taxpayer\u2019s head, and as a point of leverage.\u201d IRS enforcement policies have been travesties of due process for longer than Joe Biden has been in Washington.<\/p>\n

IRS bureaucrats don\u2019t even need to file a criminal charge before snaring citizens\u2019 life savings. Consider IRS depredations under the Bank Secrecy Act of 1970, which required banks to file a federal report for any cash transaction exceeding $10,000. The IRS \u201cenforced\u201d the law by presuming that anyone who deposited slightly less than $10,000 was a criminal. The IRS seized a quarter billion dollars because it disapproved of how businesses and individuals structured their bank deposits and withdrawals.<\/p>\n

Between 2005 and 2012, the number of IRS seizures rose more than fivefold, but the vast majority of victims were never criminally prosecuted for structuring offenses. IRS criminal investigators simply looked at banking records and then confiscated hundreds of accounts. Most of the victims were \u201clegal businesses such as jewelry stores, restaurant owners, gas station owners, scrap metal dealers, and others.\u201d The IRS targeted businesses with legal sources of income, according to a 2017 Inspector General report, \u201cto engage in \u2018quick hits,\u2019 where property was more quickly seized \u2026 rather than pursuing cases with other criminal activity (such as drug trafficking and money laundering), which are more time-consuming.\u201d The IG found no evidence in 91 percent of the seizure cases that the money came from illegal activities. The IG noted, \u201cInterviews with the property owners were conducted after the seizure to determine the reason for the pattern of banking transactions and if the property owner had knowledge of the banking law and had intent to structure.\u201d<\/p>\n

The IRS is menacing in part because federal courts have been shamelessly docile. As David Burnham, author of A Law Unto Itself: The I.R.S. and the Abuse of Power, noted, \u201cOver and over again, federal judges have found ways either to ignore or actually to legitimize the growing reach of the tax collectors,\u201d a \u201cpattern of judicial tenderness \u2026 partly the product of the natural sympathy that those in power always feel toward the tax collectors.\u201d<\/p>\n

In U.S. Tax Court, IRS determinations of what citizens owe are \u201cpresumed correct,\u201d with taxpayers bearing the burden to prove the feds wrong. Corporations with hefty legal departments routinely defeat the IRS in court, but few citizens can afford to fight a federal agency that appears to hold all the cards. Tax expert Daniel Pilla estimates that the \u201cIRS\u2019s audit results are incorrect between 60 and 90 percent of the time.\u201d<\/p>\n

The Supreme Court will soon hear the case of Romanian-American businessman Alexandru Bittner, who voluntarily notified the IRS that he was late filing reports on his foreign bank accounts (he was unaware of his duty to file). The IRS hit him with $2.72 million in fines, penalties, and interest \u2014 even though at least one federal court believed he should owe only $50,000. The difference between $2.72 million and $50,000 is a dramatic gauge of the arbitrary power that the IRS possesses over Americans.<\/p>\n

The IRS agenda<\/p>\n

The power to tax has long conferred the power to destroy political opponents. But in the glorious era of President Joe Biden, all previous cases of government abuse of power are being expunged, at least by the media and Biden supporters. The stunning political bias of Obama\u2019s IRS vanished into the Memory Hole, never to be seen again (at least by respectable media outlets). But in 2014, a report by Republicans on the House Oversight and Government Reform Committee concluded that the IRS\u2019s Lois Lerner, who masterminded the blockade of conservative nonprofit applications, \u201cbelieved the political participation of tax-exempt organizations harmed Democratic candidates, she believed something needed to be done, and she directed action from her unit at the IRS.\u201d<\/p>\n

The Inflation Reduction Act will pay for new IRS computer systems. It has received billions of dollars from Congress to fix its computers since the 1980s, but the system is still a total mess (relying in part on 1960s-era computer technologies that are no longer widely taught in computer science classes).<\/p>\n

How bad is the IRS information management system? An Inspector General report revealed that the IRS had destroyed 30 million tax information returns in 2021 without processing them because it was overwhelmed by the accumulating paper. Bloomberg News noted, \u201cThe IRS explained the documents were destroyed because the agency\u2019s \u2018antiquated\u2019 information technology systems could no longer handle them.\u201d Texas CPA Brian Streig groused, \u201cTo see the IRS just destroy these [returns] is almost like the IRS admitting they don\u2019t really care.\u201d Rep. Bill Pascrell (D-N.J.) denounced the document destruction as a \u201cscandal\u201d and lamented that \u201call the American people see at the IRS is incompetence and catastrophe.\u201d Pascrell called for Biden to fire IRS chief Charles Rettig.<\/p>\n

The IRS also sought to cover up the fact that it had failed to process tens of millions of tax returns in 2020 and 2021, continually misleading Congress and the media about the size of the backlog. Citizens faced harsh penalties for not filing their 1040 on time, but the IRS faced no penalty for making false statements about millions of tax returns it had failed to process.<\/p>\n

The Inflation Reduction Act should have been named the Boarhawging Taxpayers Again Act.<\/strong> The Internal Revenue Service has perennially been the authoritarian means to paternalistic ends<\/strong>. Since politicians worship revenue above all other gods, don\u2019t expect the Biden administration or Congress to stand up for average Americans unfairly caught in the revenue crosshairs.<\/p>\n

This article was originally published in the December 2022 edition of Future of Freedom.<\/p>\n","protected":false},"excerpt":{"rendered":"

Biden\u2019s Bloated IRS Will Skewer Taxpayers by James Bovard The Internal Revenue Service is perhaps the ultimate sacred cow in Washington. It is the \u201cgoose that lays the golden eggs\u201d for the city\u2019s power and prestige, delivering trillions of dollars to politicians to work miracles (or at least get reelected). When criticism erupted over the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3492,3286,1183,2124,3493,3491,2805,2807,3287,3288,362,49,3494,629,833],"class_list":["post-17900","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-alexandru-bittner","tag-ar-15s","tag-ben-cardin","tag-biden","tag-brian-streig","tag-dana-milbank","tag-david-burnham","tag-david-pryor","tag-fact-checkers","tag-inflation-reduction-act","tag-inspector-general","tag-irs","tag-pascrell","tag-thomas-massie","tag-washington-post"],"yoast_head":"\nBiden\u2019s Bloated IRS Will Skewer Taxpayers - James Bovard<\/title>\n<meta name=\"description\" content=\"Biden's Inflation Reduction Act will result in IRS skewering more taxpayers\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jimbovard.com\/blog\/2023\/01\/05\/bidens-bloated-irs-will-skewer-taxpayers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Biden\u2019s Bloated IRS Will Skewer Taxpayers - 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The Wall Street Journal called Bovard \"the roving inspector general of the modern state\" and Washington Post columnist George Will called him a \"one-man truth squad.\" His 1994 book, Lost Rights: The Destruction of American Liberty, received the Free Press Association\u2019s Mencken Award as Book of the Year. His Terrorism & Tyranny won the Lysander Spooner \"Best Book on Liberty in 2003\" award. He received the Thomas Szasz Award for Civil Liberties work, awarded by the Center for Independent Thought and the Freedom Fund Award from the Firearms Civil Rights Defense Fund of the National Rifle Association. Bovard\u2019s writings have been publicly denounced by FBI director Louis Freeh, the Secretary of Agriculture, the Secretary of Housing and Urban Development, the Postmaster General, and the chiefs of the U.S. International Trade Commission, the Drug Enforcement Administration, the Equal Employment Opportunity Commission, and the Federal Emergency Management Agency, as well as by many congressmen and other malcontents.","sameAs":["http:\/\/www.jimbovard.com","https:\/\/www.facebook.com\/jim.bovard","https:\/\/x.com\/jimbovard"],"url":"https:\/\/jimbovard.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/comments?post=17900"}],"version-history":[{"count":1,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17900\/revisions"}],"predecessor-version":[{"id":17901,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17900\/revisions\/17901"}],"wp:attachment":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media?parent=17900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/categories?post=17900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/tags?post=17900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}