Friday, February 25, 2011
13.3 Billion for the IRS
Well, the tax thing is starting to poke its head around the corner. Don't you hate that? What I hate the most is having to spend money on all of the services needed in order to determine what tax is due or better said, prepare what has become too complicated to do ourselves. And I employ a CPA on site.
Our accountants firm is the best in the area, but they are also the most expensive. Not my words, somebody else's. But you get what you pay for in this arena. If you don't, sooner or later you will. And due to the multiple things that we have going on, the entrepreneurial "stuff" that creeps in and out of our day to day dealings, I am lucky to have them sort it out at all. Why? Because we always seek to create a revenue producing entity. One that puts in to the system. We are successful at this sometimes, but at the end of the year there is sorting. Our logic works, it simply needs...sorting.
But what's to sort out really? I mean, as a business owner who creates jobs, one who goes through the trouble of borrowing and/or lending money to the business in order to manufacture, wholesale and/or retail a commodity, one who lays it all out there, takes chances in the spirit of capitalism, this so I can pay workers that in turn spend money in our community, I truly don't think much of the privilege of paying taxes on multiple fronts. And now the system is growing?
I must have missed the book of dont's. Because if there was a book titled "Don't go into business because the government will fleece you" I would have purchased it. Never has it been more evident that our country is in an absolute state of knee jerk reaction towards sustaining the system that it has created. I am saddened. Has anyone noticed inflation? A direct result of relief funding. Print money and the value of the dollar decreases. In our business, we are tracking an 8 percent increase in food next year. That is a half a million in real dollars passed on to our end user.
I read recently where Obama included the hiring of 5100 new IRS employees to collect on fraudulent tax preparers and high income cheating corporate tax payers. Comon folks, I wonder what that means to small business? I'll tell you what it means, it means that we are on the radar along with the others. We are in the landscape and now looked at with opportunity. More scrutiny, more need for outside expensive council to do the sorting, when the fed points to something and needs clarification.
In 2007 an audit produced a credit due. It cost us 4 thousand to defend it. Not at all kidding.
So we the small business folks who are getting the health care reform shoved down our throats. And guess who is responsible for monitoring our health care compliance, you guessed it, the IRS. This not included in the 5100 employees to be hired; a completely separate endeavor. I wonder what the projected non-compliance or penalty income gained from small business unable to comply will be? Just coming out of the gate?
Bottom line is that the income from penalties on all fronts are a new revenue source and we have given the government another portal, new legal access into our business, where it can navigate around, provide influence over how we do things and ultimately send over an invoice, whether it be in the form of a penalty, fee or tax. It really chaps my ass that we have to answer to anyone standing on the outside of our business requesting reporting and/or compliance over anything. Why? Because I am a good citizen and I pay my taxes by the rules already.
Take a guess at what the total income as a result of hiring all those IRS folks. 56 Billion over the next decade. Do you not think that we all work for the fed now? I am thinking of buying that Vanagon and selling t-shirts at festivals again. Square can you hear me?