States to zero-in on tax cheats

[Nambe]

Source: The Associated Press

The U.S. financial meltdown is creating brighter job prospects for at least one occupation: tax collector.

Several states _ including New York, Massachusetts, California and Illinois _ are beefing up tax enforcement and collection efforts as they face widening budget deficits. ..

.. New York tax collectors recently sent letters to thousands of small businesses advising them of the consequences of not collecting or remitting state sales taxes. They'll soon send letters to thousands of taxpayers whose returns were done by preparers who are under investigation for fraud, Comiskey said.

The warning letters are part of a broader campaign to publicize the crackdown and steer tax cheats to a new program that will allow them to come clean and avoid criminal prosecution. ..

Read more: http://www.lasvegassun.com/news/2008/oct/09/states-to-zero-in-on-tax-cheats-as-economy-sags/

[hobbit709]

1. Wonder what the cost/benefit ratio of this effort will be

A few years ago TX built a computer system for about $6 mill to catch welfare "fraud" that they were sure was endemic to the system. In the first year it found less than 2 dozen people and less than $50,000 in fraud.

[redqueen]

9. They must've only been looking at the little fish. (nt)

[happyslug]

10. That is a Common GOP tactic, go after non-existent fraud, while leaving real fraud alone

Thus the same Law that increased Audit funding for the IRS, then made sure all of the increase went to audit people who were applying for Earned Income Credit, and actually CUT funding for other Audits (Audit that tended to get $5 returned for every $1 spent).

No this is typical, demanding Audits that show no loss, but de-funding audits that find money.

Now, I do NOT want to attack Texas, most if not all states do the same, the controls on Welfare payments is extensive, the old joke is the best way to reduce the cost of Welfare was to reduce the controls, the biggest source of waste was the controls to prevent fraud (Welfare is notorious for putting $10 locks on 50 cent items, it would be cheaper to leave people commit whatever fraud the controls are designed to prevent).

[napi21]

2. If they weren't doing this all along, they're stupid! n/t

[Sherman A1]

3. This will be part of the trickle down

local governments will also be doing more "traffic enforcement" (speed traps) to bolster sagging revenue. Be careful driving out there.

[pattmarty]

4. What you stated has been going on for years now.................

...........just take a look at "DUI" stats. Obviously, there other reasons for DUI/DWI increased enforcement but, a large reason has been increased revenue. Also, if you look at various regions of the country you will see that "fees" (taxes under a different name) have been increasing also. This is one of the things Dean talked about in 2004, ie Federal tax decrease and local taxes increasing.

[comtec]

5. TRANSLATION: The little guy is about to get even MORE fucked

while the fat cats continue to just ... walk away, scot free!!! :mad:

[Beausoir]

6. Yep. Somebody has to pay for the bailout and it isn't coming from the top.

[PassingFair]

7. Par for the course.

[Doctor_J]

8. Yup, this will be "bottom up" application.

like most laws in the US