You've all seen the ads on TV. "If you owe the IRS over $10,000 in back taxes, call us and we can help you settle for pennies on the dollar." Then the ads go on to show the smiling faces of people who have "settled" tax liens with the IRS, some of whom allegedly owed hundreds of thousands of dollars and only paid a tenth of that. WTF???
I am aware that the IRS will settle for less that what is owed, when there is little potential for getting the full amount. But how does it ever come to that when the people shown are individuals or small businesses? Outright tax evasion? Where was the government when this was happening? And, how could such huge amounts be let slide when they seemingly catch the little family guy for a minor mathematical error on their 1040?
Bottom line on this is that the honest taxpayers end up eating the taxes for those people who do not pay. Plain and simple. It may only be pennies or a single dollar, but we all contribute to the government coffers for those who don't pay. Tax evasion is a crime and somehow people are allowed to get away with it and pass the bill on to others and once again, the honest taxpayer ends up shafted!
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