Family Doesn’t Earn Enough to Satisfy the IRS Magic 8 Ball, Gets Audited

December 6th, 2009

It wouldn’t surprise me in the least if a minimum income law was passed…

Men Who Took Food in Trash Sentenced to Six Months in Jail

Via: Seattle Times:

Rachel Porcaro knows she’s hardly rich. When you’re a single mom making 10 bucks an hour, you don’t need government experts to tell you how broke you are.

Rachel Porcaro knows she’s hardly rich. When you’re a single mom making 10 bucks an hour, you don’t need government experts to tell you how broke you are.

But that’s what happened. The government not only told Porcaro she was poor. They said she was too poor to make it in Seattle.

It all started a year ago, when Porcaro, a 32-year-old mom with two boys, was summoned to the Seattle office of the Internal Revenue Service (IRS). She had been flagged for an audit.

She couldn’t believe it. She made $18,992 the previous year cutting hair at Supercuts. A few hundred of that she spent to have her taxes prepared by H&R Block.

“I asked the IRS lady straight upfront — ‘I don’t have anything, why are you auditing me?’ ” Porcaro recalled. “I said, ‘Why me, when I don’t own a home, a business, a car?’ ”

The answer stunned both Porcaro and the private tax specialist her dad had gotten to help her.

“They showed us a spreadsheet of incomes in the Seattle area,” says Dante Driver, an accountant at Seattle’s G.A. Michael and Co. “The auditor said, ‘You made eighteen thousand, and our data show a family of three needs at least thirty-six thousand to get by in Seattle.”

“They thought she must have unreported income. That she was hiding something. Basically they were auditing her for not making enough money.”

Seriously? An estimated 60,000 people in Seattle live below the poverty line — meaning they make $11,000 or less for an individual or $22,000 for a family of four. Does the IRS red-flag them for scrutiny, simply because they’re poor?

I asked the local office of the IRS. They said they couldn’t comment for privacy reasons.

“We can’t give you any kind of broad interview because your request is associated with the case of an individual taxpayer,” IRS Media Relations said in a statement.

Driver, the tax specialist, says it’s well-known that the system targets the weak — people with sloppy returns, for example, who don’t tend to be well off.

“It’s the way a wolf goes after the weakest sheep.”

Rachel says an irony of her year in tax hell is that the IRS is right about one thing — you can’t get by in Seattle on what she makes. That’s why she’s living with her parents. To try to make a life in our shimmering city without relying on welfare, food stamps or other public assistance.

“We’re an Italian family,” she said. “We’re surviving as a tribe. It seems like we got punished for that.”

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