Saturday, 9 January 2010

IRS

The IRS folks have been in the news for the last day or two. Apparently, the statistics for questions answered are lousy and a bunch of folks are all upset....mostly senators, congressmen, and people who claim they are working for the common man of America.

The deal here is that if you had a question....there is this place you can call.....and from over 75,000 pages of tax code....Lil Joe, Arnie, and Ingrid will be able to readily answer everything you ask.....and be mostly right. Actually the folks who claim they are trying the situation.....think that this correct answer business should work about 98 percent of time.

I sat there.....thinking if you took a maintenance handbook to the ninth degree for a International Farm-All tractor....all 1,656 pages.....and called up the best tractor mechanic in Iowa.....you'd get the mechanic's answer which might be totally different from the book answer. The plain truth is that when you toss out 75,000 pages of text.....the odds are that Arnie and Ingrid over at the IRS.....just ain't going to be able to help you a single bit

Yet, the guys for ABC, CNN and Newsweek can't grasp this. Statistically......things have to be improved or the system is a failure.

Well.....the system is a failure. Once you went past 300 pages of tax code.....you pretty much made this a brain-operation procedure.

I had a co-worker who owned horse property in Montana for five years. She improved it by putting up a $3k barn. She got ready to sell it and actually made around $65k profit over what she paid for it five years before. Tax-wise...she should have paid some tax off this profit. Some senator from Montana wrote into the tax code.....a simple provision that covered six counties in Montana...and basically wiped out 99 percent of the tax liability over profits for a horse ranch.....if you met some basic conditions. She did. But hardly anyone around the area knew of this tax exception except the big-wig accountant

How many folks know of this deal in Montana? Who knows? How many deals exist like this in every state? I'd bet thousands. How many IRS guys know of this Montana deal? I'd bet less than five guys.....all Montana IRS guys.

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