76-10-A2
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Taxes I[edit]
Transcript[edit]With the 1500 pages of income tax reform Congress passed last year, we're all going to find it's harder than ever to tell the tax collector how much we owe him. Two men in Texas -- one an employee of a radio station, the other a certified public accountant -- have written an article outlining the procedure in appealing an income tax case. But, they've done more. Maxwell Green and Roy Carden have, at the same time, revealed the virtually unlimited power the Commissioner of Internal Revenue has over all of us. They've also suggested a Constitutional remedy available to us. And, they have generously told me I can pass their findings on to you. Most everyone has to employ outside help these days in figuring out his or her income tax. Yes, there is the simplified form; but, lately even that is getting complicated. If you are one of those who seeks out a tax adviser, you know that when the job is done you both are confident that the deductions you've taken are allowable. You send your tax forms and money off to Washington -- poorer but square with the law. Of course, you don't expect to be one of those whose tax return will be audited. But a certain percentage are each year. When and if it happens, you may be shocked, angry and frustrated. The I.R.S. Agent may tell you that you owe the government more money --additional tax, plus interest, plus penalties -- because the Commissioner has ruled that some of the deductions you took are not allowable. And they are not allowable because he says so. You go to your tax adviser to find out what you can do. This will usually add to your anger. He'll ask how much they want, and usually it will be an amount that will cause him to say, "pay it". His explanation will be that it's so much less than the cost of fighting that you are better off. Of course, it's a chunk of money you don't think you owe and that you hadn't counted on having to give up, which adds to its value in your mind. What are your choices? The tax adviser will tell you that under the tax law the Commissioner has authority to interpret the code and write the regulations. So, if he has interpreted your deductions as non-allowable, he has the unlimited resources of government to fight any legal action you may take. In effect you will be paying your own costs, and as a taxpayer, contributing to his. But, if you want to go ahead, you can appeal. If that doesn't work, you can go to the appellate division. In the first appeal, you and our accountant or lawyer will face an Audit Supervisor, but he works for the Commissioner. If you choose the appellate division, you face a panel of hearing officers - who are also on the payroll of the I.R.S. If they rule against you, you still have some choices: the small tax case procedure (if amount is less than $1,500.), or Federal District Court, or Claims Court in the District of Columbia. I trust you are remembering a little something called court costs. Tomorrow I'll let our two authors take you down that road a ways. This is Ronald Reagan. Thanks for listening. |
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