Political Quotes

“I also have pages and pages of case law of which the IRS has successfully litigated the issue of dividends in lieu of compensation and the applicability of employment taxes. Plus, Congress has codified the economic substance doctrine which says a transaction must have an economic purpose aside from the reduction of tax liability in order to be considered valid. In my opinion, this is the IRS's ace-in-the-hole card. The IRS can close any loophole--real or imagined--with the power of the new law. Why can't the IRS do its job with the volumes of legislative regulatory and judicial tools it already has? For example, the IRS revenue ruling could be codified somehow, but then it wouldn't provide an offset for new programs, would it? Nor would it permit my colleagues across the aisle to reduce the tax on venture capitalists for their carried interest. I don't like the carried interest provision, but to soften the impact of that policy on the backs of small businesses is just plain wrong. Even the Government Accountability Office agrees the IRS should be doing more with what it has to crack down on fraud. In a 2009 report, the GAO stated: ``IRS efforts to enforce the rules on paying adequate wage compensation to small business shareholders have been limited,'' and the IRS provides only ``limited guidance in determining adequate compensation'' guidelines for taxpayers.…”