Identity theives have posed as IRS agents in "phishing" schemes that use the tax agency's logo to lure victims. The e-mail schemes are designed to dupe taxpayers into revealing personal financial information.
The IRS does not communicate with taxpayers through e-mail, and it will not e-mail taxpayers about debts turned over to private collectors. The IRS also does not ask taxpayers for any passwords or PIN numbers that would allow the agency to access bank or credit card accounts.
Bennett also cautioned taxpayers chosen for the debt collection effort to make any check or money order payable to the U.S. Treasury, not a private company, and to send the money to the IRS. The collection agencies have been told to provide addresses to the taxpayers they contact.
This is all well and good but the IRS cautioning taxpayers via articles such as this probably won't be very widely read. Is the IRS planning to contact taxpayers directly to advise them of this program? I've not received anything from them. And from the first line of the article, "The IRS warned taxpayers", how did they warn them? By telling the AP?
I support a flat tax, as opposed to a national sales tax, because I believe that the flat tax encourages savings in a more effective manner without leaving the federal budget vulnerable to fluctuations in our economy. Under a flat tax, government revenues would not fluctuate as severely because of changes in the economy as they would with a national sales tax. This is the same problem that many state budgets are facing today because they depend too much on sales taxes.
Additionally, a flat tax better protects poor and low-income Americans because they are not forced to overpay taxes through their daily purchases, and then wait until the end of the month for a rebate check, as many national sales tax plans have proposed. These Americans need this money immediately to pay their bills and meet their needs. Under my proposal, the "Tax Simplification Act," low-income Americans would not have to pay for these distortions in the first place because of a personal deduction that would apply to all Americans.
The Fair Tax proposes a "pre-bate", paid at the beginning of the month. And low-income Americans would have the same advantage as everyone else, no deductions from their paychecks for federal withholding or social security and medicare. This is important. Even if the low-income American has no federal tax withheld, the social security and medicare taxes will still be deducted under the Flat Tax. Currently it is 7.65% and everyone pays the same regardless of income bracket.
Please follow this link for Senator Shelby's proposal for a flat tax. It certainly would be better than the current system, but it doesn't get rid of the IRS, it does not eliminate the corporate tax which is a huge plus for the Fair Tax, and it doesn't get rid of the social security and medicare tax. The Fair Tax does.
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