Written by Theodore M. David, Chair Emeritus, Tax Law Committee
Current Items:
1) IRS Work from Home?
2) Kiss Your Refund Check Goodbye
1) With all the local traffic on roads in New Jersey, it’s hard to imagine that the work-at-home ethic is still prevalent. I know a number of employers are requiring their employees to come and sit at their desks mindlessly. It seems silly. I have myself been thinking of a work-from-home gig. Psychologists say that we actually have to interact with human beings. Rubbish. You know as well as I do that when you used to go to the office all the time you are just as miserable as you are when you are home. So the question becomes what should be your work from home activity? Naturally a good friend of mine has figured out a way to make his 52 foot boat as good as his office and having a dock in Key Largo adds to its work ambience. Practicing law dockside is certainly attractive. But what should be its emphasis?
Now those who know me will remember I made a career in representing individuals and businesses with IRS tax problems. And I have stayed somewhat up to date on this IRS practice stuff. And it is with great pride that I wish to introduce you to Snitch LLC. Don’t go shaking your head about what a waste these bulletins are. I wish to point out that this side gig is almost too good to be true and is in conformance with IRS rules and regulations. I can even quote right from an IRS announcement: Whistleblowers help ensure fairness in our tax system and have made a significant positive impact to our nation by providing information regarding noncompliance and fraudulent activity resulting in billions of tax dollars collected.” It almost makes me want to stand and salute.
Now here is the gravy. Since 2007, the IRS whistleblower office has awarded more than $1.4 billion to whistleblowers, based on the collection of more than $7.8 billion attributable to whistleblower-provided information. What they are looking for is information that is specific, timely, credible and relevant as an important component of effective tax administration. There you have it. IRS says “America’s tax system is built on the principle of voluntary compliance where taxpayers file tax returns and pay their taxes in a timely and accurate manner. Voluntary compliance is improved by the knowledge that noncompliance with tax laws will be addressed through examinations, collection activities and criminal investigations.
Now getting back to Snitch LLC. A recent revenue ruling by IRS says that enhancing taxpayer experience is one of the top priorities of the IRS whistleblower office so said acting whistleblower office director Eric Martinez. His office has made a digital form for use by us snitches worldwide, I presume. With the launch of Form 211, says IRS, whistleblowers can easily share what they know with the IRS from their phones or laptops! So if you, like me, are looking for a work-from-home alternative, whistleblowing may be just the ticket. Nowhere does it say you have to be an attorney or an accountant or any kind of professional at all. You simply have to have the goods on another taxpayer or some business. I think you can get a cut of almost 20% to 30% of what the IRS collects. Perfect. Virtually no overhead to speak of. So send me your tax cheating spouses, your delinquent employers, and your double-dipping friends and neighbors. What say you? Interested in getting in on the ground floor with Snitches LLC?
2) I always like getting a check in the mail. Especially one in an envelope you can recognize and know it is not another bill. For most taxpayers, getting that beige colored envelope from the IRS that isn’t a scam sets their heart aflutter. But these days, everything is about change. For example, take Executive Order 14247. The IRS recently announced that paper tax refund checks for individual taxpayers will be phased out beginning on September 30. The IRS says this step marks the first step in the broader transition to electronic payments. Detailed guidance for 2025 tax returns will be provided before the 2026 filing season begins. Another bit of fun bites the dust.
Questions or comments should be emailed to: tdavidlawyer@gmail.com.