Yes, people cheat their entire lives and never get caught, but then again if the laws were in place to catch all of that cheating then everything you do would have to be recorded by the government. After all, income from garage sales is taxable income, as is the sale of you car. They would have to have access to all of your financial records at all times and, to really have a chance, the government would have to ban cash transactions specifically because they are not traceable (in any meaningful sense).

Just stopping tax fraud would be huge. All we would need to do to fix nearly everything and make a ton of money. Is Breakup taxes into months. Names A-C in Jan, D-F in Feb, etc... The reason the irs sucks is their amount of employees vs the job there supposed to do is assnign. We need to wait for each W2 from and the company is sent into the IRS, then issue out bills or refunds based on that. If you have deductions or any of that it can be ammended to the return. This would require expanding hte IRS but figuring the staggering amount of money were loosing through fraud its worth doing 10 times over.
Healthcare insurance companies should be broken up and made illegal. Its horrible we've turned health into a for profit biz. The insurance companies have driven up the price of everything so someone with no insurance can't even afford basic coverage.I think its sad. All healthcare should be paid for by the gov at standard but well compensated rate. Not $500 an hour $150 dr's appt's. But a standard $50 for a GP visit. $150 for a specialist visit, $100$200 for an MRI(Its 26 minutes work and costs $600) etc... Then all taxpayer would pick up the bill for everyone sickness. You should not have insurance payments taken out of your check, you should not be worrying about providers and all that crap. You should get sick and get help no money involved. It ruins to many families and puts an overwhelming stress on people insured and not insured because I've had insurance on and off for a while and they always find a slippery way to get out of things. Like "We don't cover degenerative conditions.". Then as I said we;d all pay the bills at the end of the year. Everyone would make a fair share of money for their eductions and what their doing but theirs too many middle men in healthcare these days.

I've said my wrap up.

 

The reason the irs sucks is their amount of employees vs the job there supposed to do is assnign. We need to wait for each W2 from and the company is sent into the IRS, then issue out bills or refunds based on that.

The IRS already gets your W2 and other compensation related forms electronically. If you didn't file a W2 you can bet you will get a letter in the summertime telling you that you owe the government. They won't consider deductions in that letter, and if you want to minimize the impact, it would be wise to amend your return or visit with your tax professional on amending your return ...

Daytraders ... well, now that the IRS requires the basis on the 1099-B, it's better.

Using your scenario ... you assume the government is all knowing. I went to a small business seminar about taxes in Michigan prior to establishing a business. The IRS agent told a story about them waiting to file a case in a court that is favorable to them, as they didn't think they would get the result they desired in another court. Yep, that's your all knowing government in action.

During the tax season, the IRS Revenue Agents visit paid tax preparers to see if they are doing what they should be doing ... asking questions relative to tax returns and executing due dilligence towards the Earned Income Credit.

The government isn't as smart as you think. They draw from the same society as every other "business" and their rules change "annually" because of that [sarcasm] other smart branch in the government ... the U.S. Legislative Branch ... the House of Representatives and the Senate. [/sarcasm]

Other than that story from over a decade ago, I found the IRS agents I've met to be a professional group with a difficult task and I'll even use a word that is not normally associated with the term "IRS Agents" ... and that is personalable.

The luxuary tax story and the subsequent "tax credit" for yachts over 50 feet is a fine example of the government doubling up things. I'm sure those that shout the "tax the rich" mantra didn't know of the "tax credit". The "ought to be a law" group never reads the current law to see if it's applicable. Why is there a "ban cell phone use law"? To prevent inattentive driving by cell phone users. Does every state have an inattentive driving or driving while distracted law? I'm sure they do as many things can distract the driver ... from that sexie woman sitting right next to you to the radio.