Under Trump, the IRS works only for rich people
This is the ideal time to be extremely rich, thanks to the Trump administration, ensuring that the Internal Revenue Service cannot affect the shady tax shelters that wealthy companies and individuals use to avoid paying their fair share.
Very quietly, the Treasury Department is backwards Several Biden administration rules which have facilitated detection, verification of companies and prosecution and persons using shady tax shelters. From now on, companies that use these aggressive strategies to avoid taxes are not even required to report them to the agency, so good luck to IRS listeners responsible for finding these transactions. Also left? A rule which imposed sanctions on the rich using an insurance tax regime that several courts have invalidated.
Thus, instead of resuming $ 100 billion over 10 years by closing these shortcomings, huge companies can continue to take advantage of a partnership tax rule to maintain the tax evasion deductions that flow freely. Basically, large companies buy many major equipment and can then take deductions for damping for years to protect their profits. But these deductions eventually run out. And yet large companies can maintain the deduction part by engaging in “Basic change», Which operates the tax rules of the partnership by transferring goods between the owners of partners in a manner that reduces tax gains or increases tax losses.
To audit this kind of thing, it takes a sophisticated understanding of the tax law of partnerships and other esoteric tax shelters and the shortcomings enjoyed the rich. The IRS has long been hollowed out, with regard to complex audits, having almost entirely Abandoned the audit Investment capital companies because the agency did not have enough people with expertise to do so. And since Trump took office, it got worse. The IRS lawyer team who focused on partnerships mass in mass Earlier this year. Rich tax cheaters can expect smooth navigation now.
But if you are just an ordinary person who would like a minor help from IRS on how to deposit your taxes? Too bad, Sucker. THE The IRS Farm The assistance centers of taxpayers in nine cities, another decision which is the opposite of the efforts of former president Joe Biden. Under Biden, the IRS had used the financing of the law on the reduction of inflation to open or reopen 54 of these centers.
Well, you can always call the IRS on the phone to get help, right? Good luck with that. So that the IRS maintains its existing level of telephone service, it Need to hire 11,000 representatives of the call center for the 2026 tax season. Without this, IRS agents could only answer 16% of calls.
Although the IRS no longer pursues layoffs, it lose 25,000 employees Since Trump took office. Now the agency is in the short term in critical fields and must try to quickly turn hiring, reassign employees and beg people who have gone voluntarily to go to work.
But hey, at least the remaining employees are keep busy Sharing tax data illegally with the Ministry of Internal Security to help the repression of Trump immigration. It is such a blatant violation of the privacy of taxpayers that the Acting IRS Commissioner, Melanie Krause, exit the agency Rather than participating. The administration revealed in court documents that the data sharing agreement is Already in place And being used to identify people for expulsion, but it is somehow totally legal simply because the administration says it.
It is not a secret for anyone that Trump sees the presidency as a way to reward his rich supporters and punish everyone. Forcing the IRS to close their eyes to rich tax dodgers while transforming it simultaneously into a part of Trump’s expulsion machine is almost the ideal way to do these two things.
