The IRS now assumes that people are guilty until they prove themselves innocent and are not even telling taxpayers about possible refunds just because the IRS has a hunch. Hmm. Despite their hunches, a study shows that the IRS is overwhelmingly more often wrong about the presumed guilt. Welcome to the new Soviet Union.
"It is a central tenet of American law that the government must notify an accused person of the offense it suspects he committed and must give the accused person an opportunity to present exculpatory evidence to show his innocence," Olson said in her report.
That study showed no evidence of fraud in 66 percent of the cases, and taxpayers were given a full refund. In another 14 percent of the cases, taxpayers were given a partial refund. Taxpayers got some or all of their claimed refund in 80 percent of the cases.
Nearly 75 percent of the total pool studied were low-income families claiming the earned income tax credit, designed to reduce poverty among the working poor.
"At a minimum, this procedure constitutes an extraordinary violation of fundamental taxpayer rights and fairness," she said. "In our view, it may also constitute a violation of due process of law."
