Great Moments in IRS Incompetence

By Dan Mitchell

irs-building-signThe IRS is worthy of scorn. It is a bloated bureaucracy that routinely violates the rights of taxpayers.

But even I didn’t think it was possible for a collection of bureaucrats to display the blithering incompetence necessary to send $46 million of handouts to nearly 24,000 fake returns filed from a single address.

Yes, a single address. I’m not joking. Read these details from MSN…but only if you don’t have high blood pressure.

If you make an oversight while paying your taxes to the IRS, you better believe you’ll be audited, harshly fined, and held completely accountable. Meanwhile, in 2011, the IRS accidentally sent more than $46 million in refunds to 23,994 “unauthorized” alien workers. And they sent it all to one Atlanta address. This is coming to light thanks to the Treasury Inspector General for Tax Administration (TIGTA) audit report.

Even I’m amazed, and I have extremely low expectations.

Keep in mind, by the way, that the “refunds” mentioned in the story almost surely aren’t refunds. Instead, they’re “earned income credit” payments, which are a form of income redistribution laundered through the tax code.

I explained back in 2010 how this scam works, and it’s worth noting this is a huge problem – more than $10 billion of fraud each and every year.

Continue reading at International Liberty

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  1. This agency is only symptomatic of large organizations operating under large numbers and complex rules. The way to resolve not only the efficiency issues but also address the corruption and Cronyism is to simplify and streamline the operations. Tax Reform implementing a 15% Flat Tax with no exemptions and subsidies, eliminating all double and triple taxation and inheritance taxes would address this issue and would launch real economic growth. It would also eliminate millions of the unnecessary jobs that perform non-value added services like recounting the “Beans” multiple times. It would also immediately reduce the oppressive and excessive regulatory environment on business. What is needed in the entire Public Sector is major restructuring and reform that would return over $2.5 Trillion annually to the private sector and taxpayers and would eliminate the deficit today.

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