The Morality of the Taxpayer.
When I was younger I knew a man who had an important administrative position with a state university and who impressed me with his knowledge, sense of humor and ethical behavior. Although I didn’t know his IQ I would guess it was in the Mensa class. We had many conversations about business and economics and in these he showed a conservative side but always one of high morality. One day we discussed the Federal income tax system and, to my surprise, he turned into a different person. Suddenly, he was a ferocious aggressor – “Take nothing at face value when dealing with the IRS,” he told me. “Question everything, challenge everything,” he added. " There’s not a tax season that goes by that I’m not in an argument with them over something and I usually win. If not, I’ve lost nothing in the process but still feel satisfied,” he continued. “I do this cheerfully, with no rancor, and enjoy the challenge of untangling the puzzle of some tax issue that appears open to interpretation"
He then made it clear to me that he felt no ill will toward the IRS. “They work hard trying to uphold the requirements of the tax code and I have to admire them for the job they do in trying to explain and clarify it in their manuals and instructions. But, they have an impossible job because the code has grown into a monster of complexity primarily due to those idiots in Congress who dream up ways of using the tax code for their self-serving interests.”
“Mind you,” he further explained. “I don’t cheat but I do take advantage of every possible loop hole in the calculating of the tax I owe the government. I love my country and am willing to pay the fair taxes due them. The operative word is “fair”. If I don’t understand the instructions or feel my interpretation differs from that of the taxman, I simply do what I feel is right and, if challenged by the IRS, am prepared to do battle with them. You’d be surprised how often I win. Of course, there are times I don’t and then I have to pay the piper – with interest and penalties; but it’s worth it and the battle of wits keeps the juices flowing.”
Leaning on his experience and advice, I consequently have tried to follow a similar practice. In my case, unfortunately, a smaller income and considerably less complicated tax filing, leaves me with less challenges but there have been a few instances that enabled me to interpret something to my benefit and in most of these I found also that the IRS listened, understood and acted fairly. So I’ve learned that, if you’ve made an honest mistake or have a good basis for your argument, they are not really the big bugaboo everybody makes them out to be. But, beware if you try to out-and-out cheat or put one over on them. Then they come at you like a five hundred pound gorilla – and they should.
When I was younger I knew a man who had an important administrative position with a state university and who impressed me with his knowledge, sense of humor and ethical behavior. Although I didn’t know his IQ I would guess it was in the Mensa class. We had many conversations about business and economics and in these he showed a conservative side but always one of high morality. One day we discussed the Federal income tax system and, to my surprise, he turned into a different person. Suddenly, he was a ferocious aggressor – “Take nothing at face value when dealing with the IRS,” he told me. “Question everything, challenge everything,” he added. " There’s not a tax season that goes by that I’m not in an argument with them over something and I usually win. If not, I’ve lost nothing in the process but still feel satisfied,” he continued. “I do this cheerfully, with no rancor, and enjoy the challenge of untangling the puzzle of some tax issue that appears open to interpretation"
He then made it clear to me that he felt no ill will toward the IRS. “They work hard trying to uphold the requirements of the tax code and I have to admire them for the job they do in trying to explain and clarify it in their manuals and instructions. But, they have an impossible job because the code has grown into a monster of complexity primarily due to those idiots in Congress who dream up ways of using the tax code for their self-serving interests.”
“Mind you,” he further explained. “I don’t cheat but I do take advantage of every possible loop hole in the calculating of the tax I owe the government. I love my country and am willing to pay the fair taxes due them. The operative word is “fair”. If I don’t understand the instructions or feel my interpretation differs from that of the taxman, I simply do what I feel is right and, if challenged by the IRS, am prepared to do battle with them. You’d be surprised how often I win. Of course, there are times I don’t and then I have to pay the piper – with interest and penalties; but it’s worth it and the battle of wits keeps the juices flowing.”
Leaning on his experience and advice, I consequently have tried to follow a similar practice. In my case, unfortunately, a smaller income and considerably less complicated tax filing, leaves me with less challenges but there have been a few instances that enabled me to interpret something to my benefit and in most of these I found also that the IRS listened, understood and acted fairly. So I’ve learned that, if you’ve made an honest mistake or have a good basis for your argument, they are not really the big bugaboo everybody makes them out to be. But, beware if you try to out-and-out cheat or put one over on them. Then they come at you like a five hundred pound gorilla – and they should.