This article comes from abc news were it talks about a Seattle woman being audited because she was to poor. The IRS was demanding that Rachel Porcaro, a single mother, pay the government $16,000, more than three-quarters of her then annual salary. The reason the IRS was demanding such a thing was because Porcaro is a single mother with two kids that receives no child support and does not own neither a car nor a home. With this, it was gathered that something must have been going on because with previous data that had been acquired it was estimated that it took around $36,000 to support a family of three in the Seattle area; with a $19,000 salary it would have to be impossible to raise her children on her income alone. Porcaro stated that the reason she was able to do so was because she rented the basement of her parents home for $400 a month which in turn allowed her to be able to raise her children in an adequate manner. It took somewhere along 2 or 3 years to settle out and it ended up costing Porcaro $8,000 for the audit. If this were not enough, her parents were audited right after. It seems like the transcarcertion concept works well here. Although no one was in jail or sent to jail, it seems that the idea of keeping those ‘problematic groups’ in place is at work here because no matter how you look at it, Porcaro was audited because the IRS believed she was to poor to be able to support her family. The cost of being audited would have taken up quite a portion of her annual salary, but her family helped her hire a lawyer who is helping get back the costs from the IRS itself. This kind of process could have potentially created a myriad of problems for Porcaro if her family had not helped her hire a lawyer who helped her stay out of the debt the process would have put her in.
http://abcnews.go.com/Business/PersonalFinance/woman-claims-irs-targeted-tax-audit-poor/story?id=9270893
Thursday, December 10, 2009
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