Saturday, April 21, 2007

Lost Tax Revenue

As this year tax season closes for individual income tax, every tax paying citizen should be outraged. Numerous sub-contract workers are not paying a single penny in income tax. Its a wonderful setup, get paid the going rate and or in many cases a higher rate for services and pay no income taxes.

How is this happening you ask? I can not pay income taxes without risk of losing everthing or going to jail. And the Internal Revenue Service is allowing ten of millions of workers to pay nothing in taxes.

If you are a illegal immigrant or a "dead beat" dad, you can work as a sub-contractor in the United States, get paid regularly, not have taxes taken out of our check, and never pay income tax. False identification or someone Else's identification will allow you to work for years before having to change identification. The Internal Revenue Service requires contract labor income to be report on 1099's by February of each year. This allows the contract labor to work eighteen months with a fraudulent Social Security number and up to three years with a stolen Social Security Number. Once the Internal Revenue Service notifies the payer to start withholding taxes, the sub-contractor just moves on to another business or in some cases just present the contractor with a new fraudulent Social Security number.

Where is the logic? A few years ago the IRS required copies of W-9's (the forms that sub-contractors fill out about name, address, and social security number) to be filed at least by the next first quarter the contractor paid his 941 taxes. That is no longer required.

Quick solution to this problem is to fire the Secretary of Treasury and the Director of Internal Revenue Service for not protecting the revenues of the United States.

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