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11 April 1999
Dateline--Tax Day
The Y2K-IRS scare
E-filing scams, and a candidate for Nevada State Assembly who wants elections held on tax day unsettle America's time-honored institution.
The Internal Revenue Service reports that the number of Americans who have
already filed their tax returns is down almost 25 percent from previous
years. Officials speculate that rumors circulating on the Internet
regarding the Y2K computer bug and the IRS may to blame. According to Adam
Masuel who writes an online column on money matters, the most prevalent
version of the IRS-Y2K story suggests that the federal agency will
experience a significant computer failure on July 1, 1999, the first day of
the fiscal year 2000. Says Masuel, "People are receiving e-mails telling
them that they don't have to file taxes because the IRS won't know who's
paid up and who's delinquent when its computers reach the 2000." The IRS
contends that it is nearly 80 percent Y2K-compliant and expects no data
loss to occur in its central computer systems.
Authorities in Alabama, Colorado, Washington, and Illinois are investigating
reports of widespread fraud associated with electronic tax filing services.
In a number of cases, businesses that offer consumers instant cash returns
have knowingly filed erroneous tax returns on behalf of unwitting clients.
According to investigators, the use of electronic forms helps fraudulent
tax-preparers to disguise their paperless trail. In one instance, a couple
who should have received an $8,000 refund was instead given only $3,000
with the e-scammer pocketing the difference. Steven Schlarb, a spokesperson
for H&R Block, the nation's largest tax-preparation franchise, considers
the instances of fraud to be "an insignificant aberration in the growing
e-filing industry." The number of Americans who will file electronically is
expected to increase by nearly 20 percent this year.
Byron Luper, a libertarian candidate for the Nevada State Assembly, is
campaigning on a radical platform that would allow state residents to vote
while filing their taxes. While similar to the "motor voter" initiatives of
the early 90's, Luper's controversial proposal has already overcome several
challenges from state officials. "The people and Byron Luper see eye-to-eye
on this issue" said Luper, a former boxing referee, "and we believe there
is no legitimate constitutional limitation on when elections can be held."
Polls suggest that the plan is growing in popularity among Nevada
residents. Anne Hutchinson, a professor of political science at the
University of Nevada Las Vegas, believes Luper has hit a nerve with his new
tax-vote scheme. "It's taxation with representation," quips Hutchinson,
"while too many voters are staying away from the polls for precisely the
same reasons they grumble about paying taxes, in the end they have to pay.
[Luper's] plan ties up the loose ends, however heavy-handedly."
An immigrant rights organization in Los Angeles is urging legal aliens to
withhold their state taxes this year in protest of recent legislation that
barrs them from receiving tax-supported services like public health care
and schooling. Sandra Lista, an attorney from the Immigrant Legal Defense
Fund, claims the act of fiscal disobedence will cost the state of
California nearly $1 million. Says Lista, "these are hard-working, legal
residents of the U.S. who have pumped tens of millions of dollars into the
state economy only to be scapegoated time and again by unscrupulous
politicians." A statement issued by the California Treasurer's Office
discouraged residents from engaging in "any politically motivated tax
protest" and warned that violations of state tax code would be prosecuted
to the full extent of the law.
The South to the Future World Wide Wire Service is a weekly feed of technology and media news commentary and satire published by the San Francisco Bay Guardian. Quotations attributed to public figures who are satirized are often true, but sometimes invented. Some fictional statements may, in fact, be true. Any other use of real names is accidental and coincidental. Editorial questions may be sent to John
Paczkowski.
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