Chapter 16's Blog

http://www.tax-tiger.com/Offer_In_Compromise.html

SUMMARY：

This article is about the new study which based on unpublished Internal Revenue Service data. That clearly shows the rich people who are different from others by paying taxes. They hide more of their income. The ones who has the income between $500,000 to $1,000,000 a year understated their adjusted gross incomes by around twenty to twenty-five percent. Compared to an 8% underreporting rate for those earning $50,000 to $100,000 and even lower rates for those earning less. During the past several years, the IRS has collected billions in back taxes from wealthy taxpayers but they didn't get a handle on the nature or extent of these shelters until years later and relied on tax shelter promoters' customer lists and special self-disclosure programs, not audits, to find most of the taxpayers involved. Nowadays, the government is suing UBS for the names of 18,000 wealthy Americans it believes may have had unreported Swiss bank accounts.



CONNECTION:

The reason why I choose this article is because Chapter Sixteen is talking about taxable earnings. In the article shows us that the rich ones who are paying the less tax to government but can get more income tax return.



REFLECTION:

I am quite impressed to find out that the rich people who have been paid $500,000 to $1,000,000 a year need to understated their adjusted gross incomes so high. I think that the income tax that everybody pay to government help this society a lot. But it is not understandable for me that the people have to take away their possessions from others. However, this won't be fair for everybody. In conclusion I think that will be keep our community get better if everyone has given a part of their money but people are losing their money by paying the higher tax.