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December 21, 2007

give yourself the gift of snitch

this holiday why not rat out someone who is cheating on their income taxes (as long as they earn over 200K a year), if you do, you can get up to 30% off of your income tax bill (reward is considered taxable income) :: the form, the rules :: oh my ::

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Comments (9)

I guess you can't get a reward if you report yourself..

Posted by: Brian at December 21, 2007 1:28 PM

Suppose Bill makes 10 million dollars a year. He could afford to pay an individual, lets call him Steve, over $200,000 a year just to cheat on his taxes. Bill then turns in Steve and earns a 30% discount on his taxes.

His savings would cover the income and penalties that Steve would incur.

This is what we call, "working the system."

Note: I doubt this would work as rewards are at the discretion of the IRS.

Posted by: polyGeek at December 21, 2007 4:03 PM

yeah, why not...?

-jay was here!

Posted by: jay aoyama at December 21, 2007 8:05 PM

Geez, take a page out of East Germany's book for the better good.

I'm so relieved to live in a different country.

Posted by: C++ at December 21, 2007 8:19 PM

What are the rules for ratting out your church?

Posted by: Anton at December 22, 2007 10:46 PM

You must rat your church out anonymously ...something about that doesn't feel correct spelling wise...

But yes.

Posted by: One-FISH- at December 24, 2007 5:15 AM

How disgusting.

Posted by: LJ at December 25, 2007 9:53 PM

Sure? Why not?

Posted by: Provi at December 26, 2007 1:59 AM

I don't mean to sound all in defence of this IR code, but if you get into the nitty gritty of the rules (and I did), you'll see that this is an appeal to those in position to call out criminal tax absconders, both corporate and individual. One of the main rules is that the net aggregate income of any reported violator (individual human) must be a minimum of 200,000 USD, and 2,000,000 USD in disputed/unreported income USD aggregate for any corporation, business, organization, or group.
We're not talking about us (and by us, i mean people like me, who currently earn under 100,000 USD and who don't have enough upside to gain from cheating on my federal income tax statements (not that that's my motivation for not filing properly)... I'll buy into any "slippery slope" rebuttal though). No, this is a lame idea targeting criminal organizations (the 1993 movie "The Firm" comes to mind), evil tax-evading corporations, social organizations that cheat the tax-paying public by falsely filing under the "faith based initiative" tax break code... and besides, you'd probably have to be seriously "inside" these groups, or hired by them (i.e. The Firm (Bendini, Lambert & Locke)) to be able to furnish all the supporting data and evidence of wrong doing, as required.

I'm not saying it's a good model for policy, but it at least is restricted to entities that are seriously defrauding the IRS, and ultimately, you, me, and every other average tax payer who also tangentially consume the benefits of collectivized tax revenue (ahem... :-).

Posted by: derek at December 27, 2007 8:35 PM

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