We were flooded with calls on Halloween when we invited callers to share their IRS horror stories with us and the listeners. These stories all centered on the experiences people had had during an IRS audit.
Here is some of what we learned from these comments and experiences that underscored the absolute need to REPLACE the tax code.
COMPLEXITY. The sheer complexity of the tax code leaves plenty of room for IRS auditors to exercise discretionary judgment against a taxpayer. Some of these judgments are unfair and border on being illegal. The agents get away with it because they know the likelihood of a legal challenge is low due to the costs the taxpayer would have to incur. In fact, many people just pay the assessment to get rid of the nuisance if it is not too prohibitive.
UNFAIR. One of the best kept secrets inside the IRS is being able to assess penalties and fines on tax amounts people proved they did not owe. Or, taxpayers are assessed fines and penalties for mistakes in documentation made by the IRS. This is obviously a practice within the IRS culture that may not have ever been challenged, but it is blatantly unfair to taxpayers.
HARASSMENT. When a business owner is audited three years in a row after no inaccuracies are found in any of his tax returns, that's harassment. When a taxpayer is audited because of his or her political affiliation or outspoken opposing views on issues contrary to the administration or the president, that's harassment and abuse of power. When people are asked their religious affiliations during an IRS audit, that's just illegal.
COSTS. A taxpayer being audited has to bear the unnecessary expense of accountants and lawyers to help them prove they did nothing wrong. With the IRS, you are guilty until proven innocent – at your expense.
STRESS. An IRS audit not only distracts a taxpayer or business person from important priorities in their life or business, an audit is also extremely stressful. At times you feel helpless because you are not sure what they are asking or whether what they are asking is legitimate. When you receive notices for more information preceding a holiday weekend, it is not wind beneath your wings. And when you have to "appeal" a multi-million-dollar assessment in order for it to be ultimately overturned, that's stress!
I have personally gone through this gauntlet of experiences and emotions, which gives me a first-hand appreciation of what millions of taxpayers experience every day. We deserve better.
Many lawmakers in the political class do not want to replace the tax code because it would return power to the people and away from the bureaucrats. It would also remove the biggest barrier to robust economic growth not seen in decades!
We must REPLACE the tax code.
