standard deduction instead. Do you think this is a good thing or bad thing? What about yourself do you think you are helped or hurt by this change? What about the elimination of "exemptions"? What were exemptions and what was the reason for eliminating them? OR 2. Over the past couple of decades the number of IRS workers, including auditors, has gone down, even while the population has gone up. The IRS is just much smaller than it used to be, and it cannot audit nearly as many returns. Do you think this is a good thing or a bad thing? There is evidence that many Americans do not report all their income, or are otherwise filing dishonestly. For instance, earned income credit fraud is very common. Also, before the recent law changed, claiming exemptions that one is not entitled to claim. Hiding or failing to report income is probably the worst culprit, since people who do not receive W-2s or 1099s for their income often do not report it. But the rest of us who get a W-2 or 1099 must report all of our income. So, less IRS auditors: good thing or bad thing? Why do you think they have allowed the number of auditors to go down? Please state what do you think are the most common, or prevalent, areas of abuse going on today? Have you come across any examples of abuse? the Denfoccer Week 2 1. Changes to ltemized Deductions, Exemptions, Standard Deduction Over the last couple of years there has been a very major change in the area of itemized deductions and the standard deduction. In exchange for a decrease in individual income tax rates, including in the top individual tax rate, several itemized deductions were eliminated. Also, taxpayers were given a much higher standard deduction. Tax exemptions were also eliminated. Certain itemized deductions were left standing, such as the charitable contribution deduction. What is the "standard deduction"? What is the relationship between the standard deduction and itemized deductions? Certainly under the law changes, many Americans who used itemized deductions, now use the standard deduction instead. Do you think this is a good thing or bad thing? What about yourself, do you think you are helped or hurt by this change? What about the elimination of "exemptions"? What were exemptions and what was the reason for eliminating them? OR