Economics of adding 87K IRS agents

IRS enforcers are not thugs. They are good accountants, something the US has in abundance…

That may well be so, but here a personal experience that points to something else:

Back in the90’s I was President of two business startups at the same time; both officed in relatively cheap space to save some money…but also just happened to be two doors down from an IRS district office. After a couple of years. I received notice of a full audit of both companies.

Luckily, I had a great CPA (still do!) and he said not to worry. When I asked why we would get such an audit, he cited two reasons:

  1. These are start-up businesses, and the IRS often finds something in this arena.
  2. You are two doors down; this is easy for them.

Fast forward through two weeks of hell for me…and a TON of hours from my CPA…for which I had to pay.

Net Result: A rare “No Change” from the IRS–they couldn’t find anything wrong.

Great, I thought! Now they will at least reimburse me for my CPA’s 5-figure cost, even if they don’t pay me for my time, etc. Wrongo! I got precisely zero from the IRS, even though I had done nothing wrong!

Fair? Nope! But that’s the way it works at the IRS. One is guilty until proven innocent…and I had to pay to prove it

The power to tax IS the power to destroy!

Sample of one? Maybe…but if one receives a “No Change” the IRS should have to reimburse the taxpayer.

Cheers!
Murph
BL Home Fool

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