In Uncategorized on 11/06/2015 at 17:50

Today’s e-news for tax professionals from the crowd at 1111 Constitution Ave, NW, carries the following tidbit: “The Balanced Budget and Emergency Deficit Control Act of 1985, as amended, requires that whistleblower award payments issued under Internal Revenue Code section 7623 be subject to sequestration. For fiscal year 2016, awards paid to whistleblowers under Section 7623 on or after Oct. 1, 2015, and on or before Sept. 30, 2016, will be reduced by the fiscal year 2016 sequestration rate of 6.8 percent.”

Here is yet another masterful example of How Not To Do It. There is a massive tax gap: everyone knows it. Tax evasion is a national pastime that has long since outstripped night baseball and whatever else (or almost whatever else) people do at night.

Yet Congress, in its wisdom (if that is the right word), has elected to throw every imaginable stumbling block in front of those who would denounce the evaders, and bilk them of their reward.

Even when the whistleblower proceeds at the risk of his or her own life, their reward is a paltry.

As I said in my blogpost “The Whistleblower Blown Up,” 5/20/14: “If you try to help the IRS collect, and your information gets them $30 million they’d have had no way of getting otherwise, and you have to tell your life story in Tax Court (so there’s an opinion for the world to read), you’re risking your life, and your family’s life, for nothing.

“Great public policy, ya think?”

I’ve blogged enough Tax Court rejections to question seriously whether the whole program should not be abolished. Let the Ogden Sunseteers go find honest work.

The farce no longer imposes upon any but the most gullible.

Charlie Dickens (I’m tired of quoting him, I really am) got it right in 1858.

“This glorious establishment had been early in the field, when the one sublime principle involving the difficult art of governing a country, was first distinctly revealed to statesmen. It had been foremost to study that bright revelation and to carry its shining influence through the whole of the official proceedings. Whatever was required to be done, the Circumlocution Office was beforehand with all the public departments in the art of perceiving—HOW NOT TO DO IT.” Little Dorrit, Ch. X.

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