A hair stylist in Seattle who makes fewer than $20,000 a year was recently investigated by the IRS because the government organization claims that she does not make enough money to live where she does. According to the IRS, Rachel Porcaro, cannot possibly be living on her low wages and they have determined that she is not making enough to provide for her children so she is losing her earned income credit.
I am no fan of the EIC but it is legal and if she is entitled to it, she should get it. But the IRS is convinced that she makes too little and they believe she must have unclaimed income.
Porcaro lives with her parents and does not live a lavish lifestyle. The IRS spent tens of thousands of taxpayer dollars in order to get a little more than a thousand dollars from Porcaro. That is efficiency at its finest. To top it off, Porcaro and her family are out thousands of dollars because they racked up bills defending against the harassment.
Why is it that a guy like Tim Geithner can deliberately not pay his taxes and he does not get fined or put in jail but a $10 an hour worker is harassed by the IRS? The same is true for Charlie Rangel who is a tax cheat. Why does not the IRS spend more time going after real tax cheats (just look at the Obama administration or Congress for that matter) and leave hard working people alone.
Obviously if this woman or any other taxpayer is breaking the law then the IRS has a duty to check it out but people in this income pay NO taxes. Why harass them when there are people skirting the tax laws everyday?
We need to abolish the IRS and simplify the tax code so that everyone pays a piece of the bill and we need to eliminate things like the EIC that allows people who pay NO taxes to get money back. This is backdoor welfare.
But until we do just that, this woman and many more like her are living on what they make and filing taxes in accordance with the law.
H&R Block did her taxes so it is not like she cheated them. Besides, she pays no taxes so how could she cheat anyone?
As for her kids, neither she nor her parents can claim any EIC. She cannot claim her kids because the IRS says she can’t possibly be taking care of them.
And yet she is.
Government idiocy at its best.
Hey IRS, go pick on the tax cheats in government and leave the hard working folks who try to obey the laws alone.