IRS Survey: Cheating on Taxes More Acceptable in 2013
Wednesday, 26 Feb 2014 02:24 PM
In the IRS' annual Taxpayer Attitude Survey, 12 percent of participants declared it acceptable to cheat “a little here and there” or “as much as possible.”
The tolerance for dishonesty last year increased only slightly compared to 2012 when 11 percent of participants condoned cheating.
And while 86 percent noted that they were against dishonesty, only 64 percent completely agreed that all tax cheats should be held accountable, down from 69 percent in 2012.
The survey revealed that 33 percent of participants believe the IRS devotes too much of its resources to enforcement, the highest rate since 2006. Only about a third of the respondents credited the tax agency with maintaining a proper balance between enforcement and customer service, falling to the lowest level over the same time period.
Bad financial situations are one reason why people are likely to cheat on their taxes, Valrie Chambers, a professor of accounting at Texas A&M University at Corpus Christi tells CNN Money. She says some people just cannot afford to be hit with a tax bill.
“They justify not paying because they are paying all they can for something more important,” Chambers said. “These are sad cases to see, and are probably more prevalent since the recession of 2008.”
However, some people are trying to “even the score” because they feel the government cheats them, and others cheat because they don't agree with government spending, Chambers added.
According to research from DBB World Communications, for many cheaters, dishonesty may just be in their nature.
The Fiscal Times says 15 percent of the respondents in the survey admitted to cheating on their taxes. Nearly three-fourths of those cheaters also worked a job under the table, were more likely to keep the wrong change from a cashier and lie about their income to qualify for welfare and 28 percent even confessed to stealing from their own child’s piggy bank.
Whatever their reasons, tax cheats do put a real dent in government revenues. According to the Fiscal Times, the Treasury Department says it loses $250 billion or more per year due to under-reporting.
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