Why doesn't the IRS make a priority of auditing rich folks' returns?

Politics & Elections
41

There’s nothing wrong with tax avoidance.

42

That is out of context. Fix it please.

43

You’re not in any position to tell me to “fix” anything.

46

But I am.

This will be a warning for you for quoting other posters very out of context to start a thread hijack.
I’m also instructing you to stop posting in this thread.

As you’ve been specifically instructed to stop hijacking threads, I’m bumping this up to the Modloop for possible suspension. This happens far too often with you. You need to avoid starting hijacks going forward.

47

Let’s be clear here about terminology:

  1. “Tax avoidance” is a term of art for arranging your affairs in ways that are fully legal but minimize taxes. And are fully legal even if pursued for the sole and deliberate purpose of tax minimization.

  2. “Tax evasion” is arranging your affairs in ways that are illegal and serve to reduce the taxes you apparently owe. Or simply faking the numbers altogether and so paying less than you actually owe. Or simply refusing to file or refusing to pay. All those are illegal.

The majority of what e.g. Trump does are probably well out into the sea of “evasion”, far out of sight of the dry land of “avoidance”.

It is certainly true as a general matter that the richer and more complex your business / income life, the greater the opportunity for, and the greater the temptation for, both legit avoidance and illegit evasion.

48

Having been through a few (dozen) audits for companies where I’ve been an employee, this is not nearly as clear cut at it might seem.

There are lots of arrangements that are NOT valid tax avoidance schemes because they fail tests of form vs substance. The legal equivalent of two people agreeing that the tail of a dog is a leg.

These things take a lot of resources to challenge.