Friday, August 28, 2009

'Cause I'm the taxman, yeah, I'm the taxman

Well, we've long known that prospective employers go to the google when they want to learn about a prospective employee. This bit of info should give folks pause before they post pictures of themselves puking-drunk; trash talk an old manager on a blog far less circumspect and witty than this one; or allow themselves to appear in Borat spewing a bit of bigotry.

Now there's a new thing to worry about.

According to an article in the WSJ, tax agents from a number of states, have had some luck doing a bit of on-lining to nab tax evaders. The reven-ooers:

....have begun nabbing scofflaws by mining information posted on social-networking Web sites, from relocation announcements to professional profiles to financial boasts.

On guy in Minnesota was nabbed when he put the word out on MySpace that he was coming back to his home town - and gave his new employer's name.  That fellow is now short a few thousand dollars. No word on whether the employer - a real estate company - is happy to have a tax cheat on staff. You never know. With so many "tea baggers" out there complaining about taxes some folks might actually count tax evasion in someone's favor. (And isn't it great that there's direct deposit of Social Security checks, giving folks so much more time to get out there an rag about our nefarious government.)

In another Minnesota coup, the tax folks were trying to negotiate payments with a tanning parlor that cried poor mouth. Agents used info on their web site bragging about their success in providing tanning facilities for all the entrants in a body-building contest to negotiate a larger settlement on a back bill than they would otherwise have gotten. (Gosh, there's a healthy combo: let's all juice up, then go sit in a tanning bed for a couple of hours.)

California nailed someone through a thread on a discussion board, in which folks were chatting about someone's old business, and where it was relocated.

Nebraska nabbed a dee-jay boasting about the big par-tay he had coming up.  That golden Beatles oldie, The Taxman, goes out for the guy in the suit and the briefcase in the back of the crowd. Come on, bro, un-stiff, why don't you. You look like a Blues Brother, but you party like an IRS agent or something.

Some of the busts are pretty petty ante - a thousand here, a thousand there - but, especially with states scrounging around to find each and every penny that someone can ante up, it can add up. And some of the scores are pretty significant.  Nebraska got $30K in back taxes from someone who was listed as a senior marketing rep for a large, national company.

Things moved more slowly in the old days when snooping around meant digging through bank, employment, and RMV records.  

"These new supplements are often far more efficient than the older ones, such as reading the local newspaper or making inquiries at barbershops and church meetings," said Jim Eads, director of the Federation of Tax Administrators.

Agents typically start with Google, then move on to MySpace and Facebook. MySpace is preferable, since profiles are more apt to be public. But Facebook's good, too. As are, I'm assuming Linked In and any of the professional networking or info sites.

By the way, agents can look, but they can't touch. They can't make up a profile and try to 'friend' someone.

And, in some states, agents can't get their search work done at work, since social sites are sometimes blocked to keep state workers from moseying around all day socializing when they should be working (or when they could be moseying around all day socializing offline).

Given the success that some states are having, I'm guessing that many more states will create 'free zones' in which their tax agents, and those going after dead-beat dads (and moms) can get their search on.

The IRS was mum on whether they use these techniques. What's your bet?

Me, I hope they are. And I hope that Massachusetts gets into the act, too.

I'm all for the taxman getting his hand in the pocket of those trying to weasel their way out of paying their fair share.

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