Thursday, October 13, 2011

Great idea for the IRS

Here is a simple suggestion for the IRS:

Whenever a corporation declares less federal taxes than it pays for it's top executives, board of directors plus dividends paid to stock holders, for three or more years in a row, that should automatically trigger a full field Audit of all their finances.

It's based on the simple idea that no sane corporation could possibly pay more than it is earning, and that doing so is evidence of fraud.

Strangely, such actions happen often.  Corporations routinely find ways to declare no or minimal taxes while declaring banner years and paying dividends and bonuses.

Perhaps they are doing really well manipulating the tax laws.  Or maybe, just maybe they are pretending to do really well.  Maybe their business is a fraud.  Maybe they are simply cheating the government.  Maybe

At the very least, if they are not willing to pay their fair share of taxes, they should get extra scrutiny.

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