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Really? How do we know they can get more from low income reporters?

palmfacehn 2y ago
They cannot afford the same accountants or lawyers.
yieldcrv 2y ago
because “income” means 3 different things to the IRS there are income taxes and then there are taxes on income, where income in this context is a category of earning types, which has subcategories passive income and earned income. but not to be confused with capital gains tax, which is under the umbrella of income taxes, after capital gains taxes have been computed. it is very easy to reduce income taxes (are you still following) despite high passive or earned income. so yeah they should probably look into them I’ve had 7 figures of earned income but had negative adjusted gross income, the President even sent me a stimulus check because my reported income was so low. I just blamed the White House and Congress for not differentiating and moved on.
- joshuamorton 2y ago
  In practically any situation here, you're probably misfiling your taxes and therefore one of the high-wealth folks this article is about. If you have a 7-figure earned income, you're going to be taxed at a 28% marginal rate even if your AGI is negative, because of the AMT.
  - yieldcrv 2y ago
    Had tonnnns of deductions, mostly overhead costs, lots of categories of deductions carried forward I would argue the same though, and I was in my post. The observation when filing with my CPAs was that the IRS knows very little especially between entity types that have their own filings Even the CPAs generally arent the same. The ones doing retirement dont know the non profit stuff, and vice versa, the ones doing partnership forms dont know the other sections. The IRS technically has everything but its in different departments but I can see the disincentive for the IRS, even if they disagree with one layer of deductions, another takes its place and simply doesnt carry forward. So the IRS could still wind up with nothing.

They cannot afford the same accountants or lawyers.

because “income” means 3 different things to the IRS there are income taxes and then there are taxes on income, where income in this context is a category of earning types, which has subcategories passive income and earned income. but not to be confused with capital gains tax, which is under the umbrella of income taxes, after capital gains taxes have been computed. it is very easy to reduce income taxes (are you still following) despite high passive or earned income. so yeah they should probably look into them I’ve had 7 figures of earned income but had negative adjusted gross income, the President even sent me a stimulus check because my reported income was so low. I just blamed the White House and Congress for not differentiating and moved on.

joshuamorton 2y ago
In practically any situation here, you're probably misfiling your taxes and therefore one of the high-wealth folks this article is about. If you have a 7-figure earned income, you're going to be taxed at a 28% marginal rate even if your AGI is negative, because of the AMT.
- yieldcrv 2y ago
  Had tonnnns of deductions, mostly overhead costs, lots of categories of deductions carried forward I would argue the same though, and I was in my post. The observation when filing with my CPAs was that the IRS knows very little especially between entity types that have their own filings Even the CPAs generally arent the same. The ones doing retirement dont know the non profit stuff, and vice versa, the ones doing partnership forms dont know the other sections. The IRS technically has everything but its in different departments but I can see the disincentive for the IRS, even if they disagree with one layer of deductions, another takes its place and simply doesnt carry forward. So the IRS could still wind up with nothing.