Posted: Apr 24, 2005 By: NULL

Comment: You do not want to hear this. Yes the current tax system is complex, yet
enforcing it with real support from congressional members is the significant
problem. Congressional members who would come out with support of the IRS
would not get elected. The following are a few simple solutions.
UNDERGROUND ECOMOMY: If everybody paid their fair share we would not be in
so much trouble. The underground economy is rampart. Not only the new
immigrants coming into this country but those born here. We need to capture
payments for services, rents, interest, commissions, fees, requiring
specific documentation in order for a taxpayer to be able to claim a
deduction. Specific employment agreements for W-2 employees, with canceled
checks in payment and all the payroll records that are normal. Specific non
employee agreement with the same. If a taxpayer does not have these records
they do not get the deduction, period. Condense and make the 10 common law
rules of who is an employee easier and specific. Problem areas: Attorneys
(generally congress members are a part of this group) regular and trust
account payments (Project Esquire), construction industry, real estate
transactions, areas of 1099 issuance. The IRS could carryout quick and
short audits of payments from company records without going into full fledge
audits and quickly determine compliance. I have more but your attention is
SOCIAL SECURITY: When you review the history of Social Security monies have
been taken from the funds for other government uses. This money needs to be
paid back and with normal interest. In addition, the Federal Government
needs to convert the retirement system they created for themselves which is
unfair to the people they represent (IT IS LIKE WE ARE BEING RIPPED OFF) to
the social security system the people have to work so hard to receive a
measly return. Somebody who works for a company or several companies paying
into the social security system over their life do not get 100% of their
In addition, why do people who never worked a day in their life in this
country get social security in some form. Why do children of these elderly
social security recipients never working here get a salary from Social
Services for taking care of them? I have seen this throughout 30 years of
being a CPA. Years ago before phase out of exemptions, an Anesthesiologist
making $500,000.00 did not claim his mother as a dependent because she would
not be able to collect social security which she was sending back to her
native country and his wife would not get a salary for taking care of the
mother in their mansion.
STUDENT LOANS AND GRANTS: Wealthy parents each making 6 figures did not
claim their children on their tax return, instead the children who received
a minimum salary from one of their parents businesses below the tax return
filing requirement claimed a address of a relative and themselves on their
own tax return, and when they applied for grants, etc., they did not have to
provide information from their 6 figure parents. A problem here is that
those that have a strong religious background and morals end up paying while
the standard of living of these 6 figure people continues to expand.

I have been a practicing CPA for 30 years and the above is just the surface.
I firmly believe congress is aware of these things and were they to stand up
for what is right they would not be elected. Robert L. Harrison, CPA can be
reached at the E-mail address from this E-mail, but be clear who you are or
you will be deleted. Thanks for letting this go into one ear.