What lies beneath: Evidence from leaked account data on offshore banking use

Re:What lies beneath: Evidence from leaked account data on o... by LorenPechtel on Monday May 24, 2021 @12:17PM (#27266176)

The IRS doesn't do a lot of heavy lifting.

The IRS does a lot of stuff that can be easily handled by a computer--matching up data from various sources to make sure it agrees. Once it needs a human eyeball, though, they do very little.

It's just your Joe-Blue-Collar guy has most of his finances already reported to the IRS, anything wrong and the matching computer will catch it.

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Re:What lies beneath: Evidence from leaked account data on o... by TechBro8615 on Monday May 24, 2021 @01:06PM (#27266904)

They can also hire private companies to help, like they’re doing with crypto and some chain analysis company (I forget which, maybe multiple).

It’s a bit frightening that the IRS can deputize a corporation but I guess with crypto you live by the sword, die by the sword. Maybe the dystopia imagined by crypto enthusiasts is a self-fulfilling prophecy. You get the government you prepare for?

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Re:What lies beneath: Evidence from leaked account data on o... by NovemberWhiskey on Monday May 24, 2021 @12:47PM (#27266610)

This is the truth of the matter. Most errors/fraud for Joe-Blue-Collar revolves around refundable tax credits as there's a pretty good chance he's not even paying any income tax.

The EITC is particularly complex (blame Congress) and therefore error/fraud-prone, but many aspects of typical errors/fraud can be mechanically detected (is this a qualifying child? is this qualifying child being claimed on another return? is there undocumented non-W2/1099 income being used to support this claim?).

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