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The IRS Leans Harder on Small Businesses

On August 6, 2008, the National Small Business Association (NSBA) launched a new website called PreventIRSAbuse.org. Its stated purpose for doing so is to "educate small-business owners on the myriad harmful proposals being promoted by the IRS and Congress to raise revenue, and urge the small-business community to speak out against such proposals."

NSBA rightfully notes:

In this economic slump, the last thing Congress or the IRS should do is target small business. Unfortunately, that's exactly what the IRS is already doing. In their efforts to raise additional revenue, to both close the so-called tax gap and provide revenue offsets for any major piece of legislation, small business has become the piggy-bank Congress and the IRS are shaking for every last cent.

NSBA cites data that:

• the IRS increased audits on small corporations by 41 percent between 2005 and 2007

• small businesses are responsible for creating 93.5 percent of "all net new jobs since 1989"

• "audits of the nation's largest corporations plunged in 2007 to its lowest level in the last 20 years"

In the perverse calculus of Washington, D.C., this is exactly the way things should be. Large corporations should get easier treatment, and small businesses, which make up most of the economy's entrepreneurial vitality, should be shaken down for more money to solve the "tax gap" problem.

NSBA should be commended for encouraging the backbone of America's economy to fight against and curb these abuses. However, merely fighting back is not enough.

This attack on small business is really an attack on the middle class. A strong middle class ensures the chance that freedom will endure. Eliminate the economically independent class and you eliminate those who are most resistant to tyranny.

The IRS will continue to use Americans' own money, coercively taken, to make sure that an out-of-control government, which knows no limits on spending, can collect even more revenue.

The IRS was given additional power in May 2007 when Congress passed a little-known law which holds accountants responsible for "questionable or aggressive tax items" on tax returns.

A former IRS official commented that the law represents "an attempt to deputize" more accountants, because it is "politically unacceptable to put more agents on the street or increase the IRS's budget."

Because accountants can only rely on the information brought to them by the client, that's why, in the past, the IRS has invited people to tattle on tax cheating neighbors for a big reward.

Now with tax preparers being required to play the IRS's role, this raises another concern. Might unethical accountants be tempted to make mistakes on purpose, and then collect up to $10,000,000 for turning the "tax cheat" client in?

The special fiduciary responsibilities accountants have to their clients are now being eclipsed by the demands of the state.

Boycotts and complaining about such Gestapo-like practices won't work in the long run.

The John Birch Society offers a solution that will.

Educating other voters and taxpayers about solutions and having them pressure Congress to act according to constitutional principles and repeal the federal income tax is part of a new strategy called "Take Your Money Back" or TYMB.

Go now to www.TakeYourMoneyBack.com or www.jbs.org/takeyourmoneyback and make use of the suggested activities there.

Let's get rid of government intrusion in our lifetimes, so our kids and grandkids have a better future.

Original story & comments at: http://www.jbs.org/index.php/jbs-news-feed/2488-the-irs-leans-harder-on-small-businesses

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