Friday, August 15, 2008

The Workings of The IRS

This old man just does not understand the logic of the Internal Revenue Service.

The Internal Revenue Service has the duty to collect taxes, reduce the chances for income tax evasion and yet they do not require reporting of everyone’s income.

Attorney fees are required to be reported, if the fees are paid by a partnership or corporation. However, individuals are not even allowed to report the fees they pay to attorneys. Why, this is the only source of income of many attorneys? Seems like a easy avenue to under report income to me.

Rental payments are not required or even allowed to be report when paid by individual payers.
Why this is the only source of income of many slumlords? I can not tell you how many people I have known over the years that do not all their rental income if any.

Payments of services to plumbers, air condition and heating installers/repairman, auto repairs, physicians, hospitals, CPA/accountants/tax preparers, surveyors, septic tank installation/repair, foundation repair, replaced roofing, carpet installation, wedding planners, florist, and etc. Cannot be reported even when they are over $600.00. Why, it looks like a easy avenue to under report income?

Guess I am just to old to understand.