Interesting People mailing list archives

The IRS wants to use social media to catch tax cheats


From: "Dave Farber" <farber () gmail com>
Date: Thu, 27 Dec 2018 17:12:17 +0900




Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: December 27, 2018 at 15:03:46 GMT+9
To: Multiple recipients of Dewayne-Net <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] The IRS wants to use social media to catch tax cheats
Reply-To: dewayne-net () warpspeed com

[Note:  This item comes from reader Randall Head.  DLH]

The IRS wants to use social media to catch tax cheats
By Justin Rohrlich
Dec 26 2018
<https://qz.com/1507962/the-irs-wants-to-use-facebook-and-instagram-to-catch-tax-evaders/>

The Internal Revenue Service is looking for ways to scour social media platforms like Facebook, Instagram, and 
Twitter in its ongoing quest to catch tax cheats.

That’s according to a request for information issued December 18 by the IRS’s National Office of Procurement. The 
mining of social media data by the agency has been suspected in the past, but the IRS has never before confirmed the 
practice.

“Businesses and individuals increasingly use social media to advertise, promote, and sell products and services,” the 
IRS solicitation reads. “For example, taxpayers can create ‘online stores’ on social networking sites free of cost. 
Much of this information is unrestricted, allowing the public, businesses and various governmental agencies to 
discover taxpayers’ locations and income sources. But the IRS currently has no formal tool to access this public 
information, compile social media feeds, or search multiple social media sites.”

Current IRS policy regarding its employees’ use of internet-based social media research is “largely prohibitive,” it 
continues. Workers are barred from using their personal social media accounts for work, nor are they allowed to 
create fake accounts to perform compliance-related tasks. The IRS also “prohibits fictitious ‘friending,’ ‘liking,’ 
and ‘following’ a person or business.”

Evinnia Lenick, a senior program analyst with the IRS who is overseeing this stage of the initiative, and Kelvin 
Bogan, the contract specialist on the project, did not immediately respond to a request for comment.

American businesses underpay their taxes by $125 billion each year, according to IRS estimates. Overall, the tax 
agency reports a net tax gap of more than $400 billion annually due to tax evaders.

The agency can certainly use all the help it can get, especially in the face of a budget deficit that has swollen 
under president Donald Trump to $782 billion; corporate tax receipts have dropped $92 billion year-over-year. The IRS 
is also working with fewer resources: As of last year, it had 9,510 auditors, one-third fewer than it had in 2010. It 
conducted 675,000 fewer audits in 2017 than it did in 2010, a drop of 42%. What’s more, nearly a third of current IRS 
employees will be eligible to retire in the next year.

As such, the IRS is looking for a social media search tool that will, among other things:

   • Provide a product that is easily explainable in court.
   • Provide real time, customizable reports of publicly available social media information (provided or advertised 
by businesses), such as new products, current sales, and new locations.
   • Provide reports showing that a taxpayer participated in an online chat room, blog, or forum, and reports showing 
the chat room or blog conversation threads.
   • Provide available biometric data, such as photos, current address, or changes to marital status.
   • Provide access for at least 25,000 concurrent users.

[snip]

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