Aug 4, 2017

FICA Receipts Hurt By IRS Budget Problems

     From the Fiscal Times:
A new report by the Treasury Inspector General for Tax Administration released this week highlights the problem and suggests that the IRS may still be doing too little to go after employers suspected of hiding wages and failing to report billions of dollars in federal payroll taxes, including for Social Security and Medicare. 
The inspector general analyzed 137,272 cases from tax year 2013 in which there was a glaring discrepancy between employee wage and withholding information reported to both the IRS and the Social Security Administration and found that the IRS declined to investigate most of the possible fraud. According to the inspector general, the IRS intervened in only 23,184 of those cases, or just 17 percent of the total. ...
   And it's going to get worse since the IRS budget keeps getting cut, allowing abusive schemes to flourish.


Anonymous said...

Notice how there is all the political will in the world to go after those evil poor folks who might be gaming SSA for some SSI, but none to be seen to go after business owners and the rich for their comparatively gargantuan tax avoidance (and often out and out fraud) schemes.

Every institution in this country exists to protect the property rights of the rich, and the sooner we realize this, the sooner we can work to change them for the benefit of the many.

Anonymous said...

For decades, employers are reporting to the SSA & Medicare that they give X amount to employees regarding worker compensation benefits. As it is, the employers have not been giving out those worker comp benefits. These benefits create the amount a disabled worker will get on SSDI.The disabled worker SSDI is then offsetted by the SSA and gets less money than anyone else who applies for SSDI benefits. How the SSA allows the employer to make statements and don't follow through with their WC benefits is a huge puzzle. The same goes for Medicare on MWCMSA's where the employer states it will give so much for the medical care but the bulk is picked up by Medicare even when the employer fails to pay anything. Come to find out, the employer does not have to file an WCMSA. In essence, the disabled worker receivess SSA/Medicare from his and other citizen's contributions via FICA BUT THE employers get away with not paying one red cent.
I would like to know why the SSA/Medicare agencies get to allow the employers to get away with out paying anything by law and getting away with all of this for at least 30 years. In many cases, those who come here from other countries get more per month and they also get full medical care where the disabled workers do not(, the employer states they will pay for the WC injuries medical care but the disabled cannot get the medical care they need for their injuries or illnesses. Many a disabled worker like our vets end up on the street and something is clearly wrong with the SSA/Medicare letting employers off the hook by not reporting lying employers who state they're giving benefits in both SSDI & Medicare but are not, while the American public get stiffed employers and the SSA/Medicare and THEN, both the employer insurer and the agencies will say the disabled workers who will be called the fraud!!!!AND no one to tell it to that could clean up the fact employers been lying and cheating and committing fraud for decades and the SSA/Medicare been going along with it all, cheating the disabled workers and the public.