Debating the Eluisive Tax Gap
Ohio CPA Dana Stahl has been watching the discussions on the tax gap issue.
Mr Guru - I finally got around to looking at the Roth & Co post on the "tax gap". He, as you know, took you to task for "selection bias", citing restaurant owners & others who keep revenue off the books & those who come up with bogus deductions (of course, you would NEVER know about those matters, right? You've only been preparing taxes for how many years now?Guess that means you've got no clue to how the real world really works).Anyway, he does raise an issue here. Wondered what your counterpoint would be. Something for your blog in the future?
DS, CPA, ABA, ATA, ATP
In regard to the tax gap debate, I have never said that nobody cheats on their taxes. In fact, I make a point of posting plenty of articles on tax cheaters. Maybe it's just the difference in my outlook on humanity. Most other people, including some other bloggers, seem to always see the worst and start from the premise that everyone is dishonest and will cheat on their taxes. Based on my 30+ years of working with people from pretty much all cross sections of our society, I know that assumption is not true and is an unfair characterization. I stand by my opinion that it is wrong to treat everyone as a criminal and punish us all with more Gestapo like powers for IRS just because of a small number of people who refuse to obey the laws.
I'm nearing the end of an email exchange with someone who is a classic example of how people intentionally overpay their taxes that I hope to post in the next few days.
Update: I have posted the above-mentioned email exchange.