Tag Archives: IRS

There is no honor among thieves

From The Washington Post:

Whistleblower Joseph Insinga suing IRS for not being paid a reward

By ,

Joseph A. Insinga was the ultimate whistleblower. The former executive with a Dutch bank says he divulged to the Internal Revenue Service details about how for years his employer helped U.S. companies dodge taxes.

Now Insinga is taking tax authorities to court for failing to give him a reward that he says he is owed by the federal government.

“I gave substantial documents to the IRS,” said Insinga, 61, who is retired and lives in Florham Park, N.J. “It was only a matter of time before some of the companies had to pay money they owed. We thought [IRS officials] were going to process an award.”

Insinga filed a whistleblower claim with the IRS in 2007, a year after Congress passed a law to help the government uncover tax cheats by encouraging informants to come forward. Those with inside information could receive up to 15 to 30 percent of any taxes, fines, penalties and interest the IRS collected from a taxpayer who was illegally sheltering taxes, usually a corporation.

Insinga says he is entitled to a portion of the money the IRS collected from the taxpayers he exposed. He’s confident that at least one company, and maybe more, was forced to pay taxes based on his information. He had alleged that Rabobank Group, where he worked as an executive for more than a decade, helped seven companies avoid hundreds of millions of dollars in taxes through offshore partnerships and other corporate schemes. But he says that he has heard nothing from the IRS.

Insinga’s lawyers filed a lawsuit Feb. 21 in U.S. Tax Court in Washington, claiming that the IRS owes their client a share of the proceeds it collected. The IRS declined to comment on the case.

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I’m Allowed to Rob You

http://www.youtube-nocookie.com/embed/ngpsJKQR_ZE?rel=0

A Personal Letter to the Tax Collector

Dear Sir/Madam,

I write this letter in good faith and with best intentions. I recognize that you probably have hopes, dreams and goals like any other human being and that you likely need to earn a living as you pursue those hopes, dreams and goals. I further understand that you honestly believe in the work that you do. The purpose of this personal letter is to make a case, using logic and reason, for you to reconsider your choice of employment.

I begin with the question, “are you a friend or an enemy to human life?”

Why do I start with this question? I believe it helps us get to the heart of the matter by focusing on our relationships to each other as fellow human beings. While pondering this question, I believe that a few definitions are in order before proceeding:

Simplified Definitions

Life: our biological existence in space and time.

Liberty: the ability to live one’s life as one wishes while respecting the lives of others.

Property: the goods that man produces or acquires through voluntary exchange and/or gift. Claims of land ownership are included here as well.

Murder: the taking of man’s life without his voluntary consent. This deprives him of his future (and future productivity). Excluded from this definition is the taking of another person’s life in the act of self-defense against an aggressor (when one believes one’s life is threatened) or in the defense of others when the lives of these others are threatened.

Slavery: the taking of man’s liberty without his voluntary consent. This deprives him of his present.

Theft: the taking of man’s property without his voluntary consent. This deprives him of his past (the time energy and talent that he used to produce this property).

Plunder: The ill-gotten gains from theft.

Let us further contemplate the nature of life

I put forth the following observations:

  • Man seeks happiness (and seeks to remove uneasiness or discomfort).
  • Man seeks to extend and enhance his life for if there is no life there is no man.
  • In order to live man must consume those things that sustain his life (food, shelter, etc.).
  • In order for the necessities of life to be consumed they must first be produced.
  • An infant cannot produce for himself so he must rely on the production of others through charity.
  • As a child matures he must continue to rely on the charitable production of others until he learns to produce for himself.
  • In the process of producing for oneself man usually develops a specialized skill that he can trade for the products of the specialized skills of others.
  • This process of production results in what is often referred to as “the fruits of man’s labor”.
  • The products of his labor are a direct extension of man’s life because they are the result of his invested time and life energy.

First Conclusion

Based upon the definitions and propositions set forth, anyone who seeks to take another man’s life, liberty or property against that man’s voluntary consent is an enemy to human life.

Further Observations

There are some men who seek to take away the property and liberty of others in order to use this production for personal profit. These men choose this path as they find it preferable to producing for themselves.

This short-term benefit is not only dangerous to the thief but it is detrimental to his long-term well-being as well. This is because his victims must divert a portion of their resources toward protection services instead of toward production. This loss of production reduces the overall societal quality of life as there are less products and services available for trade and enjoyment.

Despite this, the thief is not concerned with the detrimental, long-term effects of plunder as he only cares about the immediate personal benefit. Therefore, the rest of society must take protective measures if they wish to safeguard their life, liberty and property.

The Ignorant Plunderers

These are the individuals that unintentionally participate in plunder as they have not thought through the consequences of their actions. Those in this category are the majority of all plunderers and, unfortunately, a large percentage of society.

The Purposeful Plunderers

These are the individuals who know that their actions are contrary to human well-being and they continue in their plunder anyway. They can be thought of as “anti-life”. Those in this category are in the minority of all plunderers.

This brings us back around to our original question: “Are you a friend or an enemy to human life?”

If you consider yourself a friend to human life (which I hope you do) then you have now come to the realization that you have unintentionally fallen into the Ignorant Plunderers category by way of your employment. You recognize that the taking of a man’s property without his voluntary consent is an act of theft.

I recognize that I, too, must answer this question. I realize that if I wish to be a friend of human life I must refuse to take part in plunder by not accepting the stolen property that is offered to me in the form of public “benefits” that are funded through coercive taxation.

Now the question becomes, “what are you going to do about it?” Are you going to cease this plundering activity or are you going to cross over into the Purposeful Plunderer category and become an intentional enemy of human life?

It is my hope that you consider yourself to be a friend of humanity and that you will choose to modify your actions so that they are in alignment with your beliefs. I have made my choice. Can I consider you a friend?

Sincerely,
A Fellow Human Being

Greece and America: the Taxman Wants More

From Mises.org:

By Douglas French

Agents from the Financial and Economic Crime Unit sat at the Three Little Pigs Cafe bar in Athens recently working a stakeout to find a suspected tax cheat–the Three Little Pigs owner. These Greek government gumshoes were soon asking to look at customers’ receipts to see if the night club was collecting value-added taxes.

“Armed with a new law devised to help Greece crack down on tax cheats, the agents shut the cafe for the next 48 hours because, they said, receipts were missing,” the New York Times reports. “Across the city, other restaurants and nightclubs were also being padlocked, their names showing up in the local newspapers, their front doors sealed for all to see.”

Greek authorities believe their government is losing $30 billion a year because taxpayers aren’t paying what they owe. “We have learned a lot,” said Ilias Plaskovitis, the general secretary of the Finance Ministry. “We have had great success in identifying who owes taxes, but much less in collecting them.”

Doctors magically just report enough income to remain under the higher-rate thresholds. “When tax authorities recently surveyed the returns of 150 doctors with offices in the trendy Athens neighborhood of Kolonaki, where Prada and Chanel stores can be found, more than half had claimed an income of less than $40,000. Thirty-four of them claimed less than $13,300, a figure that exempted them from paying any taxes at all.”

The Greek government has determined from satellite photos that 10,000 wealthy Greeks own pools, which are taxed, but only 324 admit it. As you would imagine sales of green, grass-like pool covers are brisk.

A proposal to jail tax evaders for 20 years is being submitted to Parliament at the same time more citizens than ever before are turning in their neighbors for tax avoidance.

Meanwhile across the pond, President Obama has proposed a $3.7 trillion dollar budget, $100 billion less than last year. The President says he’s making the tough choices, trimming $1 trillion from federal government spending over the next decade.

While the president may be holding the line on spending for most federal agencies, the one agency people love to hate–the Internal Revenue Service–is getting more money and more troops if Mr. Obama has his way. The White House is requesting that the IRS be budgeted for 5,100 more agents and a 9.4 percent increase in its budget, to $13.28 billion. Reuters reports this would allow for a roughly 5 percent increase in agency manpower to just over 100,000.

In it’s budget summary, the White House explains that the additional $1.1 billion in extra money will help the IRS “improve service to taxpayers” and “make interactions with the IRS more smooth and effective.”

The words “service,” “smooth” and “effective” are what come to my mind on April 15th, how about you?

The budget increase will support “new investments” in IRS compliance efforts that the administration says will help bring down the deficit, and “The result will be a more nimble, responsive, data-driven IRS that is better able to manage the complex tax administration environment posed by a more global and interconnected economy,” the budget report says.

In his wildest dreams George Orwell couldn’t have crafted such doublespeak.

The Treasury Department budget calls for a doubling of funds for IRS enforcement and the President wants to double the enforcement budget again within five years. Chasing down tax cheats will supposedly save taxpayers $1.3 trillion by the year 2014 according to the IRS. The U.S. government believes it’s losing over $300 billion a year from non-compliance, ten times what the Greek authorities think they’re missing.

With that kind of budget and manpower, IRS agents may soon be tailing the citizenry to determine if our way of life matches what’s on our 1040′s.

IRS Inflicted Misery

When the tax collector takes property without voluntary consent (also known as armed robbery) people feel helpless and are often led to desperate acts:

Man Bulldozes House Before It Gets Foreclosed
http://tinyurl.com/yzrqnwm

Pilot Crashes Into Texas Building in Apparent Anti-IRS Suicide
http://www.foxnews.com/story/0,2933,586581,00.html

Beware Thy Neighbor

Socialism pits neighbor against neighbor and destroys the fabric of society.  Here is just another example:

Tax Informants Are On The Loose

Janet Novack and William P. Barrett, 11.24.09, 06:00 PM EST
Forbes Magazine dated December 14, 2009

A new federal rewards program dishes out cash to people who turn in friends, relatives and employers for fudging their tax returns.

For 24 years Vincent A. Spondello toiled away as an accountant for a group of related companies known as Monex, a large Newport Beach, Calif. precious metals dealer. A trusted employee, he prepared tax returns and was given such tasks as overseeing the destruction of old corporate documents. It turns out that some records that were supposedly destroyed he took home instead.

In May Spondello sent 25 boxes of original Monex papers to the Internal Revenue Service–documents that could buttress the IRS’ claim that Monex’s owners fraudulently moved around assets to avoid a $378 million tax bill. He made his document drop after hiring lawyers and filing a claim for a whistleblower reward that could total $57 million or more. Monex denies it owes anything, has fired Spondello and is demanding back its documents.

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