Quote:
Originally Posted by Exhibitman
Now that is a textbook case of catastrophizing. The IRS audits roughly 0.3% of returns (3 of every 1000). The IRS initiates criminal investigations against fewer than 2 percent of all American taxpayers.
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Like you I had a legal practice for many years and got many 1099s. I suppose practicing law for 25+ years made me an expert at "catastrophizing." But I would say for good reason. I don't like this 1099 expansion one bit. Perhaps, as you say, the IRS in the recent past has only audited 0.3% of returns. However, past is rarely prologue. The Orwellian-named "Inflation Reduction Act" just added funding for thousands upon thousands of new IRS auditors (we can argue about the exact number). So we can all safely chuck that 0.3% number out the window. Yes, this new regime will result in some incremental revenue to the feds from tax cheats. However, it will come at a nontrivial cost in terms of time, cost, effort and worry to non-cheats. There are almost never solutions. There are only trade-offs. The feds are encroaching on new turf. Everyone should admit that.
Let me add that I enjoy your blog. Thanks for starting that.
Edited to add: Same comments to Bob C. Yes I am serious. I am very concerned about federal encroachment. I do not place unqualified trust in federal authorities, although I know many good people who work for the federal government. Neither did our founders repose trust in centralized authority. Apparently you are not as concerned, which is your right. It is still a free country.