Comments on: Ignoring tax cheats Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 By: Wersackit Thu, 29 Sep 2011 16:56:56 +0000 Mr. Johnston – as someone who has been there at Tax & Finance, the problem lies with the way DTF views tax fraud: as a line item on the budget.

As an example, let’s take income tax and the Earned Income Tax credit. Tax auditors will be assigned to look for a particular kind of known fraud for the EITC and will continue looking for such fraud until they find enough of it to reach a budgeted target amount in that fraud. Then that’s it – they stop looking for it. They are then reassigned to look for the next type of fraud and do so once again until they hit that targeted amount. Rinse and repeat this process again and again.

Even if it seems pretty clear that there is far more fraud to be found, DTF simply moves the auditors on to the next target. NYS and DTF do not view recovered fraud as incoming revenue – simply a budgeted expense, and that mentality is exactly the problem.

These policies were set in place by elected officials and their appointees set in place to run the show at DTF and are longstanding. Additionally, DTF simply does not have the human resources necessary to continue looking after the goal is reached, mainly because of the aversion politicians have to increasing the number of public employees due to our political climate. This will only be exacerbated by Andrew Cuomo laying off some 300 workers from DTF yesterday, many of whom were the tax auditors and tax technicians who were on teams searching for such fraud.

Until the entrenched mentality that tax fraud is simply a goal number to hit instead of acknowledging that it may go far beyond that goal number and resources are needed to continue to search it out, things will never change.

By: SUT Thu, 29 Sep 2011 16:56:28 +0000 Unortunately Mr. Heinz i s not competent nor qualified to opine about tac cheating. He is and was and will always be an auditor who through the tactic of being a yes man achieved the poisiton he is now in. He is rigid, unimaginative and does not know how to arrive at a resolution of disputes. As the Frm. Dep. Comm. and Counsel to T&F I alwasy felt that the biggest impediment to collecting money for the State of NY was the Audit Division. When I started in the Dept. in 1995 there were almost 9000 cases waiting to be tried. When I left 4 yrs. later we had less than a thousand. In addition the case load was down to under a thousand. This all despite theAudit Divisions obfuscation and obstruction. When you have an Agency where the auditors control settlements, no settlements will be ever had. As I was told at a Conference of NYS Tax Auditors, (where I was booed) the auditors considered their cases their babies. ufortunately the baibies were also thrown out with the “bathwater”.

By: roja Tue, 27 Sep 2011 21:18:29 +0000 If he was so smart, why didn’t he go to the press. which is more powerful than any other media ?

I find the very idea of americans adoring candidates who make more money in their campaigns disgusting, and that this should be banned.

Elected politicians favoring the ones who contributed more and pardoning them at the end of their call this democracy ??

Well if this was a more educated and less bible-oriented country I think this would not have happened.

By: Greenspan2 Tue, 27 Sep 2011 20:35:27 +0000 The US is not much different from Greece in terms of tax evasion, lying, and cheating. The difference is that America presents itself as being an “example” and beacon to the rest of the world, while in actuality is just as corrupt as some third world countries. I suspect that the rest of the world has always seen America for what it really is and that it is US citizens who have been brainwashed and manipulated into believing the farce. Maybe the scales are starting to fall from their eyes.

By: eachtohisown Tue, 27 Sep 2011 17:09:47 +0000 Interesting.
And illegal.

A legal tax loop hole I have always been uncomfortable with is The Charity.

I think they should be “regulated” in some way, so as to go to Local Education etc, but “overseas aid” , so-called, should be funneled via a few clear organisations, such as Save for the Children. The donors could label their contributions to target specific causes.

Quasi-charities mean the Treasury gets less.