Download the
Tom's Guide App from the AppsStore
News and trends on internet
/ mobile / "sound & picture" / IT
Yes No

IRS Finding Tax Dodgers via Facebook, MySpace

- By - Source : Tom's Guide US

Tax agents are heading to social websites to track down evaders.

Tax evaders looking to dodge hefty bills from Uncle Sam may want to think twice about posting personal information on the Internet, especially social websites where some of the information is out in the open. According to the Wall Street Journal, state revenue agents are mining websites such as Facebook and MySpace for information leading to tax evaders.

The WSJ describes several scenarios used by the government: one deejay in Nebraska said on his MySpace page that he was working at a big public party, and now must shell out $2,000. A tax evader from Minnesota announced on his MySpace page that he would be returning to the state as a real-estate broker-- even provided the employer's name--and was caught by authorities and forced to pay thousands.

Typically searches for tax evaders begin with examinations of bank, employment, tax, and motor-vehicle records, the WSJ reports. When the evader isn't found using that method, tax collectors head online and search for the culprits on Google. If the search isn't productive, they head to Facebook, MySpace and other social networks and chat rooms.

Not to worry: not all state tax departments are trolling social websites... at least, not yet. Many state tax authorities actually block social sites on workplace computers to keep employees off Facebook and MySpace during working hours. Jim Eads, director of the Federation of Tax Administrators, said that may eventually change.

[Updated 16:17 PST: updated for clarity]

Share:
33
Comments
X

Comments

twisted politiks 08/29/2009 1:18 AM
Hide
-4+

as much as i dislike the way our government is going atm, i still dont agree with evading taxes, just leaves me with more to pay to fill in the gap. i think its pretty comical that they are resorting to Myspace and such tough, just proves nowhere is safe from Big Brother anymore. China here we come!

maigo 08/29/2009 2:18 AM
Hide
-6+

I just got payed 50 thousand dollars commission on a huge land deal, and I'll never have to pay taxes on it because the FEDs will never know!

IzzyCraft 08/29/2009 2:38 AM
Hide
-2+

Never fcuk with the IRS is the underlying theme as always.

Major7up 08/29/2009 3:13 AM
Hide
-0+

And that's exactly why I don't have accounts on any social networking sites...I don't want people to track/find me so easily, particularly old acquaintances.

the associate 08/29/2009 3:40 AM
Hide
-0+

Haven't people heard of privacy options? I mean you CAN make it so not anyone can browse your profile :S
People stupid enough to have their profile fully public kind of deserve to get owned by their own nonsense imo

ben850 08/29/2009 3:44 AM
Hide
-0+

what next

coolronz 08/29/2009 6:26 AM
Hide
-0+

hahaha thats funny... hence why i just work for wages... running from the IRS cant be fun... life is too short to be running all the time....

w4ffles 08/29/2009 10:06 AM
Hide
-0+

So our tax dollars are being spent on people being on facebook and twitter all day?

FUtomNOreg 08/29/2009 10:53 AM
Hide
-2+

the associate :
Haven't people heard of privacy options? I mean you CAN make it so not anyone can browse your profile :SPeople stupid enough to have their profile fully public kind of deserve to get owned by their own nonsense imo


You'd better read the terms of service at your soc-net. Those "privacy" options (and the site operators) won't protect you.

JohnnyLucky 08/29/2009 11:01 AM
Hide
-0+

I always knew there were a lot of mentally deficient people who commit acts of stupidity. This is just another example.

Regulas 08/29/2009 2:58 PM
Hide
-8+

I wonder how many cases it costs more money (taxpayer funded) for the IRS to find a tax cheat than they get back from them?

mlopinto2k1 08/29/2009 4:01 PM
Hide
-0+

Oh no! I can't hide from Uncle Sam anymore! Douchebag, don't put yourself out in the open in the first place and you will be OK. Why are you evading Uncle Sam anyway? What makes you so special?

Anonymous 08/29/2009 4:55 PM
Hide
-3+

Ask the IRS where the law is that requires a private sector citizen, earning his or her living within 1 of the 50 States, to file a tax return. They can't tell you because the law does NOT tax such earnings. The law is very vague about filing when it comes to private sector citizens but very clear when it comes to foreigners, non-resident aliens, foreign corporations, Federal Government employees at any level, Americans with possessions income (ex.. Income from Guam, Puerto Rico, American Samoa, etc.. which are things the Federal Government owns and can therefore tax whatever from them)and certain foreign based income for Americans.

Interestingly enough, the reason you will NEVER find any part of Title 26, USC, requiring a private sector citizen to file an actual tax return based on money earned in the private sector in any 1 of the 50 States is because there is no law. The reason there is no law is because the US Constitution doesn't allow for such form of taxation.

Article 1, Sec 8, Clause 3
Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;" (my note: within the several states was never granted to congress, only among them in a general sense)

Article 1, Sec 9, Clause 4
"No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken"

The 16th Amendment does not authorize a new tax for those of you who are new to this.

Here’s the 16th amendment that was ratified in 1913 which many people assume gave congress a new power of taxation:

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” - - US Constitution, 16th amendment (1913)

The US Supreme Court case, Stanton v. Baltic Mining Co, 240 US 103 (1916) explicitly said "the provisions of the 16th Amendment conferred no new power of taxation"

Read the whole case here at Findlaw.com:

http://caselaw.lp.findlaw.com/cgi- [...] &invol=103

The IRS claims to this day that their authority to lay this income tax directly upon a private sector citizen comes from the new power granted to it by the 16th amendment, which the court already ruled 3 years after the fact that the 16th amendment conferred "no new power of taxation". All the 16th amendment did was to classify the income tax as an "indirect excise" ... that's it! The big argument at the time was whether or not congress could lay an Income tax directly or indirectly. The Supreme Court in 1916 put this whole issue to bed when they ruled that the 16th amendment just confirmed that congress can ONLY LAY AN INCOME TAX INDIRECTLY. A tax that a private sector citizen is not required to pay when earning money in 1 of the 50 states! That is why you find all these parts of the law requiring monies that have to do with foreign transactions and Federal workers and employees as taxable. The US Constitution strictly prohibits direct taxation unless apportioned....period!

Go read the Grace Commission report instituted by Ronald Reagan and released in 1984... and learn where your personal income taxes go, which is to pay the interest on the debt of the federal government... here's that link....

http://www.uhuh.com/taxstuff/gracecom.htm

And here’s an excerpt from the Grace Commission report:

“With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.”

Huh, what did that say, 100% of what is collected is absorbed by interest on the debt and NONE OF IT GOES to pay for the services taxpayers expect from their government!

In short... THE IRS IS THE DODGER! Sad how many Americans don't even know what the law says yet they comply with the mystery tax law based on whether or not they will be prosecuted and possibly thrown in jail. And I don’t blame the American people for doing so. I file as well because I don’t want to deal with the wrath of an UNLAWFUL prosecution. But I DO NOT FILE BECAUSE I BELIEVE I OWE THE TAX! As if the use of force is the actual law itself. It is UNLAWFUL use of force against private sector citizens earning their money from within 1 of the 50 States when 1 of those citizens does NOT file a tax return based on a tax that is not even his/hers!

Americans have become the most complicit group of people (me included) in this GRAND mis-application of the income tax every year... year after year.... the BIGGEST FINANCIAL FRAUD perpetrated on the American people every April 15th. April 15th I would contend is the real April fools day.

photoguru 08/29/2009 5:50 PM
Hide
--1+

Scared enough... you might as well stop paying taxes then and share it on tomsguide :P

Anonymous 08/29/2009 8:53 PM
Hide
-3+

The above is right. The only legal taxes are apportioned taxes, taxes with a specific purpose. Such as taxing gasoline to pay for roads.

Income tax is not a legal tax, there have been several court cases where people have been found innocent of not paying their taxes because the irs could not provide the legislation saying people had to in the first place, because it doesnt exist.

But, there have been MANY more cases where the person gets thrown in jail or is forced to pay, regardless of the fact there is no law. Most people just accept that there must be one.

There was even one case where the judge said the supreme court decision regarding the 16th amendment and the power of taxation was irrelevant.

Bottom line, even tho its not legal to tax your income....pay your taxes, or you are likely to get screwed. I know they aren't legal but i pay them because i don't want to deal with the irs mafia.

The tax system of the US needs to be completely torn down and redone. Put taxes solely on services and consumption. No irs needed, no tax laywers, no tax accountants, etc. Just pay your tax at point of sale, and you are done.

wild9 08/30/2009 12:31 PM
Hide
-2+

The sheer hypocrisy.

Audit then overhaul the damn Federal Reserve ssytem first - where's all that money gone from it?!

cjl 08/30/2009 10:34 AM
Hide
-3+

scared enough :
Ask the IRS where the law is that requires a private sector citizen, earning his or her living within 1 of the 50 States, to file a tax return. They can't tell you because the law does NOT tax such earnings. The law is very vague about filing when it comes to private sector citizens but very clear when it comes to foreigners, non-resident aliens, foreign corporations, Federal Government employees at any level, Americans with possessions income (ex.. Income from Guam, Puerto Rico, American Samoa, etc.. which are things the Federal Government owns and can therefore tax whatever from them)and certain foreign based income for Americans. Interestingly enough, the reason you will NEVER find any part of Title 26, USC, requiring a private sector citizen to file an actual tax return based on money earned in the private sector in any 1 of the 50 States is because there is no law. The reason there is no law is because the US Constitution doesn't allow for such form of taxation.Article 1, Sec 8, Clause 3Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;" (my note: within the several states was never granted to congress, only among them in a general sense)Article 1, Sec 9, Clause 4"No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken"The 16th Amendment does not authorize a new tax for those of you who are new to this. Here’s the 16th amendment that was ratified in 1913 which many people assume gave congress a new power of taxation:“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” - - US Constitution, 16th amendment (1913) The US Supreme Court case, Stanton v. Baltic Mining Co, 240 US 103 (1916) explicitly said "the provisions of the 16th Amendment conferred no new power of taxation"Read the whole case here at Findlaw.com: http://caselaw.lp.findlaw.com/cgi- [...] &invol=103The IRS claims to this day that their authority to lay this income tax directly upon a private sector citizen comes from the new power granted to it by the 16th amendment, which the court already ruled 3 years after the fact that the 16th amendment conferred "no new power of taxation". All the 16th amendment did was to classify the income tax as an "indirect excise" ... that's it! The big argument at the time was whether or not congress could lay an Income tax directly or indirectly. The Supreme Court in 1916 put this whole issue to bed when they ruled that the 16th amendment just confirmed that congress can ONLY LAY AN INCOME TAX INDIRECTLY. A tax that a private sector citizen is not required to pay when earning money in 1 of the 50 states! That is why you find all these parts of the law requiring monies that have to do with foreign transactions and Federal workers and employees as taxable. The US Constitution strictly prohibits direct taxation unless apportioned....period!Go read the Grace Commission report instituted by Ronald Reagan and released in 1984... and learn where your personal income taxes go, which is to pay the interest on the debt of the federal government... here's that link....http://www.uhuh.com/taxstuff/gracecom.htmAnd here’s an excerpt from the Grace Commission report:“With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.”Huh, what did that say, 100% of what is collected is absorbed by interest on the debt and NONE OF IT GOES to pay for the services taxpayers expect from their government!In short... THE IRS IS THE DODGER! Sad how many Americans don't even know what the law says yet they comply with the mystery tax law based on whether or not they will be prosecuted and possibly thrown in jail. And I don’t blame the American people for doing so. I file as well because I don’t want to deal with the wrath of an UNLAWFUL prosecution. But I DO NOT FILE BECAUSE I BELIEVE I OWE THE TAX! As if the use of force is the actual law itself. It is UNLAWFUL use of force against private sector citizens earning their money from within 1 of the 50 States when 1 of those citizens does NOT file a tax return based on a tax that is not even his/hers!Americans have become the most complicit group of people (me included) in this GRAND mis-application of the income tax every year... year after year.... the BIGGEST FINANCIAL FRAUD perpetrated on the American people every April 15th. April 15th I would contend is the real April fools day.


Bullcrap

http://www.politicalhobbyist.com/debunked/taxmyth.html

Dave_69 08/30/2009 9:36 PM
Hide
-1+

The government will use all means necessary to fuck us in the ass.

matt87_50 08/31/2009 2:06 AM
Hide
-0+

Ugh, again... isn't facebook meant to be PRIVATE? i thought that was it's whole advantage over MySpace?

still, I suppose the idiots that post incriminating information about them selves on the net are the same idiots that wouldn't make sure the authorities couldn't see it.

coonday 08/31/2009 3:06 AM
Hide
-4+

I guess I should remove "don't pay taxes" from my about me section

cletus_slackjawd 08/31/2009 4:11 AM
Hide
--1+

The second biggest scam is commercial anti-virus software. You are sold the product, and then you are tied into a perpetual, compulsory 'update' service. It should by all rights last the lifetime of the operating system it is designed to protect. It should also come bundled with a decent imaging program for when the protection "doesn't do it's job" either that or offer a 100% money back guarantee if it fails perform as advertised. If anti-virus software was a motorcycle helmet, you would pay full price for it, then have to pay an annual subscription to get new graphics on the shell every year. And if you fall and your head cracks open cause the helmet doesn't work, you are on your own, no recourse for the protection you paid for.

Anonymous 08/31/2009 4:34 AM
Hide
-1+

The problem is that the govt feels entitled to a cut of any monetary transaction that takes place. The income tax and IRS were created after WW1, which consisted of the top 1% of earners paying 5% of their income. Fast-forward about 100 years, and we have literally over 100 different taxes, on top of our progressive 30-50% income tax.

On that note, THANK GOODNESS we spent about US $10trillion "fighting" the cold war, we didn't launch a single nuke, but we damn sure looked butch to those mean old Soviets, and made quite a few millionaires in the defense contracting business, all while scaring the shit out of our parents with a more-or-less imaginary threat. PS: Sputnik is watching you.

soldier37 08/31/2009 2:06 PM
Hide
-0+

Just work a job that pays cash only, Thats what I did a few years ago and never gets reported, but in time you have to pay uncle sam and catch up so I did. There are other ways to get back at the tax man, trust me. Be glad you dont live in England where they tax half of everything you make! Thats what the Obama admin really wants to do.

dark_lord69 08/31/2009 5:22 PM
Hide
-0+

Ya, I don't think the general public should be able to know what I've been up to.. it's really none of thier business. So, I don't don't have any pages execpt for facebook which has limited access until you are accepted as a friend.

christopherknapp 08/31/2009 5:45 PM
Hide
-0+

I think it is amazing how most people are just "OK" with this tax. It is not only unconstitutional, it is downright stealing money from the very people that make this country.

What will it take for everyone to wake up? Why is it that people believe there is some kind of ruling elite? The people that made these "rules" and "laws" are just humans. They are made of the same thing that you and are. Nothing special.

The whole point of scaring people into paying taxes is that they then feel obligated, and if they feel obligated they then feel as though everyone else is obligated, and if everyone else is obligated and there is someone who chooses not to pay ... WELL they are the outsiders. They are the ones in the wrong. These laws have turned us against one another. We have all lost touch with the fact that we are all just humans.

dark_lord69 08/31/2009 6:31 PM
Hide
-0+

"The tax system of the US needs to be completely torn down and redone. Put taxes solely on services and consumption. No irs needed, no tax laywers, no tax accountants, etc. Just pay your tax at point of sale, and you are done."

I like that idea. I think this would save corporations money because they would not have to pay for all those people mentioned. And the government would save money because there would be no IRS. (One less {unoffical} branch of government). This would also help corporations cut back on waist. If companies are saving more then products can be offered for lower prices. But the lower prices would even out because the government would not able able to servive on 6 or 7 percent of whatever it is. Even if the tax was 15% I would be able to keep more for my 401K and in my savings. 15% would still be less consumable tax than my current 25%. (Which is total BS btw)

Ramar 08/31/2009 6:42 PM
Hide
-0+

Eh. I'm a fair tax hippie, but as a small business owner, I feel that you have to pick some way to support your government and nation. Either pay taxes or pick up a gun. Regardless of how many problems I have with our government, I'm still living here and so I still respect them because that's what you do when you're a decent person that doesn't whine all the time.

Anonymous 08/31/2009 7:39 PM
Hide
-0+

Ramar: Congress doesn't represent the people anymore, and hasn't in a long time(note the wildly unpopular policies of the last 9 years to be shoved down our throats). Tax dissent and even evasion is patriotic, the majority of congress should be on trial for corruption charges, "we the people" don't owe them a thing, especially not our money. Stop being such a sheep.

ssalim 08/31/2009 9:26 PM
Hide
-0+

They should also search Bing. lol

dingumf 09/01/2009 4:08 AM
Hide
-0+

I'll just create a false name on Facebook and whala.

starwolf0 09/01/2009 10:22 PM
Hide
-0+