Don’t Give President Obama’s IRS More Power

May 29, 2013

May 30, 2013

By: Al Cardenas

The Internal Revenue Service (IRS) recently apologized for flagging 75 conservative groups that used terms such as “tea party” or “patriot” in their filings. With this in mind, how good do you feel about giving the agency more power? If some in the Obama administration have their way, the IRS will be taking even more control over your tax returns.

Under a so-called return-free system, the IRS would send you a pre-filled tax return. You would either accept the IRS’s determination and enclose a check or receive a refund, or file your own alternative return. Simple, easy, and voluntary — they say.

Unfortunately, the rosy scenario the IRS and its allies tout runs head-first into reality. The IRS is charged with collecting taxes and enforcing the law when taxpayers don’t comply. The agency has an incentive to maximize the revenue it collects from a given taxpayer. A taxpayer, meanwhile, has an incentive to minimize his or her tax burden by taking deductions and credits to the full extent of the law. If the IRS got into the tax preparation business, there would be a conflict between its interests and taxpayers’ interests.

Advocates of return-free filing claim that such a system would be “voluntary” — if you didn’t like the IRS’s determination, you could simply disregard its version of your return and file your own. However, the IRS isn’t known for its warmth and fuzziness. It’s a safe bet that many Americans who received a notice from the agency would fear challenging the determination.

Even if the IRS had only the purest of motives, in many cases the agency wouldn’t have enough information to file a complete return. The IRS derives income information from W-2s and 1099s, but it depends on taxpayers to report their non-wage income and claim deductions and credits for transactions that the IRS has no way of knowing about, like charitable donations and moving expenses.

The claim that return-free filing would save time also doesn’t hold water. Since taxpayers are responsible for the accuracy of their returns, under a return-free system they would have to take the time to verify the accuracy of the IRS’s determinations. Not doing so would expose them to the possibility of underpayment or prosecution. Contrast this with a private sector tax preparer who — unlike the IRS — shares liability with the taxpayer for an erroneous return.

All of this is to say nothing of the fact that to implement such a scheme, the IRS would need to hire thousands of new employees and build a massive new system to crunch the data and generate millions of tax returns — another massive expansion of government by the Obama administration.

Don’t let President Obama’s IRS fool you. A return-free tax filing program is a bad idea that could double the size of the IRS and expose taxpayers either to a de facto tax increase or liability for tax evasion. More power is the last thing we should be giving the Internal Revenue Service.

Al Cardenas is the chairman of the American Conservative Union.

Read more: http://dailycaller.com/2013/05/30/dont-give-president-obamas-irs-more-power/#ixzz2UsxjXP97

comments

Join ACU

The ACU Blog

**MUST WATCH** Bloomberg Politics is ‘All About That Bass’ at CPAC 2015

You just can’t miss this great video from Bloomberg Politics:

This week, Bloomberg Politics will flood the zone at the Conservative Political

A Statement from the American Conservative Union 2.22.2015

Media Contact: Ross Hemminger (419) 934-3069

All conservatives, including conservatives who are gay, are welcome at CPAC. Thoughtful consideration has been made to showcase all

Janine Stange Will Sing the National Anthem at the Reagan Dinner

Janine Stange, known for singing the national anthem in all 50 states, will sing the National Anthem at the Reagan Dinner this year.  To learn

CPAC is One Week Away!

Have you registered for CPAC 2015 yet?  It should be the biggest of our lifetimes… will you be there?

 

Watch the

CPAC Begins in:

Conservatives Want a Candidate for President Who Can Connect, CPAC Chief Says

Originally published by The Daily Signal

by Ken McIntyre

>>> Update: The Daily Signal has learned that Fox News host Sean

Fox News: CPAC 2015: ACU Chairman Schlapp says Republican presidential nomination starts here

Originally posted on FoxNews.com

By

Editor’s note: Fox News’ Dana Perino, former White House press secretary and current

Founded in 1964, the American Conservative Union (ACU) is the oldest and largest grassroots conservative organization in the nation. For more than forty years, ACU has served as an umbrella organization harnessing the collective strength of conservative organizations fighting for Americans who are concerned with liberty, personal responsibility, traditional values, and strong national defense. As America's premier conservative voice, ACU is the leading entity in providing conservative positions on issues to Congress, the Executive Branch, State Legislatures, the media, political candidates, and the public. Read More

1331 H St NW Suite 500
Washington, DC 20005
Ph: (202) 347-9388 | Fx: (202) 347-9389

Contact Us
Privacy Policy
Opportunities/Careers

ACU. All Rights Reserved.