similarly, irs data indicates 38% participating in the plans make less than $50,000 a year, while almost three quarters make less than $100,000 annually. the proliferation of tax favored retirement accounts occurred as specific needs have led congress to create new plans with different rules. some, however, have questioned whether the large number of plans with different rules and eligibility cry tier yee leads to confusion reducing incentives and retirement savings. offering ideas for participation in retirement plans and better targeting the incentives. these ideas range from simplification and consolidation of existing plans and accounts to changing the default rules governing whether an employ participates to additional incentives such as savers credit. at the committee continues its work it's porptd to keep in mind these affect average people who depend on these resources for retirement and must ensure we do not inadvertently take steps resulting in consequences that threaten the retirement security of ordinary families. as this committee considers tax reform, three important princi

the irs has something called the cue which is a data base in which tax returns for people who owe taxes which aren't handled by revenue officers or any other method in the irs, literally are put in line. that line contains millions of tax returns and keep in mind there is a statute of limitations. on when someone has to comply with their tax obligation. so millions of dollars or potentially and in being lost, the irs has not addressed these returns, had someone assigned to look at them. but one of the most disconcerting aspects of all of this is that the irs has an incomplete document matching program. so, the irs does not have reliable third party data for taxpayers, for all taxpayer sectors at least, and for all types of tax returns. and most notably income earned by the self employed. i carry this card with me and i cite this at every opportunity i can because this is information that comes from the irs theirs is compelling. actually you heard earlier today there is a very high orallation between tax compliant and reporting. individuals whose wages are subject to withholding report 9

researchers compared irs deadline data with crash records from the national highway traffic safety administration found over the last three decades an average of 13 more people died on tax days compared to the two weeks before and after the deadline. the study's authors say one of the reasons may be the stress destracting drivers. >> check back in with us today at 4:00, 5:00 and 6:00, we will have the latest on the underwater quake threatening indonesia, and trayvon martin's parents speak out today in washington, d.c., wjz will bring you complete coverage. join us for these stories and the breaking news today at 4:00 right after dr. phil. >> please stay with us your five-day-forecast is next. you're the best mom ever. thank you, sweetie. oh... ♪ >>> -- temperatures on the rise here. how about these five friday reading. 72, then 77, three shy of 80 sunday, two shy of 80 on monday. that is what i am talking about -- >> yeah -- >> -inside. >> -- you, finally this noon a decades old mystery is revealed, the creator of the simpsons talks about his inspirations. where is it? the answer is springfield,

researchers compared irs deadline data with crash records from the highway at 60 ministration and found over the last three decades an average of 13 more people died on tax day compared to the two weeks before and after that deadline. the study's author said the stress of the day may distract drivers. a warning about texting and walking.,,,,,,,,,,,,,,,, [ birds chirping ] [ inhales, exhales ] [ announcer ] cigarettes are not just dangerous when they're smoked. [ rat squeaking ] they're dangerous long after. cigarette butts are toxic. they release chemicals that poison our water... and harm wildlife. and millions... are polluting our environment. [ sniffing ] [ seagulls squawking ] >> certain varieties of oranges are in and out of season throughout the year but these charges are year-round and right now from florida a pineapple juice variety that is coming in, that is a variety, pineapple juice oranges, a flavor is amazing this time of year and the price is low. look at this juice. the skin is very thin to appeal and the juices, maybe one or two seeds at the most. and look at all that je

sperling, i understand that, but according to irs data, 22,000 homes out of 110 million did pay less than a 15% tax rate at the very top end. so, yes, there are some people that are paying very little, right. 1,500 millionaires paid zero. i get that. don't you think we're propagating just by having this conversation the idea that there is this big problem out there that can be solved by a few thousand households when in reality you could tax those thousands of households at 100% and won't even make a dent. >> listen, i've been on this show and others and we've been very clear compare today where tax rates are today, this would raise $160 billion to reducing the deficit. $160 billion still counts. and i think what you don't w to do is denigrate each item in a plan whether it's agriculture subsidies or medicare provider savings or something like the buffett rule, no piece alone is going to reduce the deficit. but this is an important component for trust. it's an important component for shared sacrifice. this president is putting forward a budget that asks a lot of americans to sacrific

data tells us. >> mr. chairman, if i may jump in here, i do think the irs is doing a rolling research study. so they're going to be doing three years rolled up at a time. so you would be able, even though you may be a bit behind, you would -- when 2006 is done, you would do 2007, 2008, 2009 rolled together and then you just move one year on as you go along. to the point about how long it really does take, if you have even 2006, some people are filing in october 15 9/and you may want those people in your random sample because there may be some complex returns. soap you're waiting for those to go through the processing. and then taxpayers have rights. so even those 14,000 audits that we have, they may want to go tie paels before they go to tax court. if they go to tax court, it may take a year and a half before they're out of tax court. we have to wait until we're final on the whole issue. we don't know what's going to be in that 14,000 case sample, whether there are going to be some tax court ones or not. so much it's not an easy thing. i do think that the irs' proposal about the rolling samp

irs is modernizing itsz information systems. obviously you need systems in place that can handsel massive amounts of data. irs getting billions of information returns each year. your talking about a lot of information so you are not making tax payers wait for refunds. >> i wouldn'

according to irs data, those who pay between 50 and 100,000 in income are paying an average of 9%.e of 24%. we can have a debate about what's fair but we should have a debate about what are the facts. the president wants to single out loopholes in the tax code. republicans want to throw it in the nearest trash can and start over again with something that's fair, flatter, and simpler for all americans and not trying to have politics and division and envy which the president is trying to have. >> that's yes. thank you. >> you can get rid of corporate income tax otherwise you are paying twice. a lot of times dividends and capital gains is taxed and then to the individual for a second go-around. it's another 15%. it is a higher tax rate. >> nice to see you, sir. thank you for your time this morning. appreciate it. >>> still ahead this morning on "starting point," is the future of life entertainment dead or maybe people who have been deceased? new details about the hologram. if you are about to head to work, you don't have to miss the rest of our program. go to our live blog at cnn.com/

you know, brad, the president claims it's about fairness as juan pointed out but irs data, and we checked shows that middle class workers on average pay just under 15% in federal taxes. the richest .1% pay almost twice as high a rate on average, 26%. so isn't the fairness argument being made by the president here belied by his own statistics? >> absolutely. the top 10% earners in america pay for everybody else, basically. vast majority of americans don't pay any taxes at all though they may small state tax. they don't pay any federal tax. gregg: right. >> this idea of creating a straw man, a bogey man, to shift the blame like he did with bush in 2008. in to 12, it is somebody else's problem? no, mr. president, it is your problem. gregg: i have to squeeze in another question for juan. "the wall street journal" editorial saying nothing more than a sneaky way for the president to justify doubling the capital gains and dividend rate from 30% to 15. let me quote their editorial. the problem is this is a tax on capital needed for firms to grow and hire more workers. how will investment be spurr

irs data shows middle class pace an average of 15% while the rich pay an average of 26% on their tax s to the federal government. again, deceptive data being used by the president? >> well i think you can, it's complicated as those facts would suggest. many wealthy people pay capital-gains tax but the truth is, which is 15% rate right now on long-term investments. gregg: right. >> but the fact of the matter the very wealthy can hire an army of lawyers and accountants to circumvent this and help them defer this tax and a lot of small business who play throw-through income on a individual tax return will not have those resources to do it and they will bear the brunt of this tax. gregg: doesn't look like it will pass. senator john cornyn, thanks very much for speaking with us. >> thank you very much. gregg: martha? martha: coming up why really cool new technology could help make your next plane ride a little faster on the way to the ground. gregg: plus more than 100 twisters ripping through america's heartland. we're live in the town that took a direct hit. are you receiving a payout fro

irs is modernizing its information systems but obviously you need systems in place that can handle massive amounts of data. irs gives billions of information returns each year. so you're talking about a lot of information that you'd have to match very quickly so that you are not making taxpayers wait for refunds. >> mr. chairman, i would note those certain software tax packages, turbotax being one do allow for people to download their w-2s electronically. it does exist, but it's $65 to purchase that package and some people just don't want to make that be expense. >> we've thought a lot about behavioral modification. i think that the demise of refund anticipation loans has you know, refund anticipation loans was told taxpayers you can get your dollars tomorrow. suddenly the irs getting you money through direct deposit and electronic filing within ten days looked like a long time. we have to really think hard about messaging and communicating with taxpayers to talk to them be what's the reality of the filing season and they do want us to do these refund screens and that the first year it may be hard because

refunds on false documents goes beyond the amount detected and prevented by the irs and upcoming report will provide further data. access to third party income and with holding information at the time tax returns are processed is a single most important tool the irs could have to identify and prevent tax fraud. chairman platts, ranking member towns, thank you for the opportunity to share my views. >> thank you, inspector general george. mr. white. >> chairman platts, ranking member towns and the subcommittee i'm pleased to be here to discuss the tax gap, i.d. based fraud and how to reduce them. the gross tax on pages 4 and 5 of my statement as you heard, was recently estimated by irs to be $450 billion for tax year 2006. this is the amount the taxpayers should have paid but did not pay on time. note that this is the amount unpaid for just one year. of this irs estimates as you heard, that it will ultimately collect $65 billion from its enforcement actions and late payments by taxpayers leaving a net gap of $385 billion. one piece of context is that the tax gap has persisted at about the same level as a percent o

similarly irs data indicate 30% of those participating in contribution plans make less than $50,000 a year and three quarters make less than $100,000 annually. proliferation of tax favored retirement accounts has led congress to create new types of plans with different rules. some have questioned whether the large number of plants and different rules and eligibility criteria reduce the effectiveness of incentives and increasing retirement savings. in addition many commentators offered ideas for increasing participation in retirement plans and better targeting the incentives. these ideas range from consolidation of existing plants and accounts to changing the default rules governing whether an employee participates to additional incentives like sabers credit. as the committee continues to work toward a comprehensive tax reform is important to keep in mind these savings vehicles affect average people who depend on these resources. we must insure we do not inadvertant we take steps that result in an intended consequences that could threaten their retirement security of ordinary families.

the irs is modifying its information system and you need assistance in place that can handle massive amounts of data. the irs gets billions of information returns each year. talking about a lot of information you have to match very quickly so you are not making taxpayers wait for refunds. >> certain software packages do allow people to download their w. 2s electronically. it does exist. $65 to purchase that package and some people don't want to make that expense. >> we have fought a lot about behavioral modification. the demise of refund anticipation loans. tell taxpayers you can get your dollars tomorrow and suddenly the ira's getting your money through direct deposit and electronic filing with in ten days looked like an enormously long time. and we have to think about the message and communicating with taxpayers to talk to them about the reality of a filing and they do want us to do these refund screens. the first year may be hard because you're depending on this money like you have always but if you adjust your behavior you can depend on it in the future at the same time every year. the lower inc

policy proposal was based nmpl significant part on research that was done using the compliance data that irs develops to estimate the tax gap. and so that's an example of how you can use that is data to make changes to reduce the tax gap. it's estimated that the first seven years of that basis reporting proposal bring in $7 billion. that's a reduction in the tax gap. in terms of information reporting, third party information reporting, one of the advantages there as i think has been discussed somewhat is that irs can match that will information to tax returns rather than having to do an audit. audits are labor intensive, very costly for irs. more importantly, they're very burdensome on taxpayers. so this is an alternative to audits for enforcement processes. the difficulty is in identifying new information reporting sources. there are some thampl we have raised in recent reports, some additional resources. >> mr. white, if i can ask you, mr. towns, if you don't mind, plrn conley needs to run for a floor statement. if we can kind of come back, let mr. conley get in and then we'll come back to

similarly, irs data indicates that 38 some of those participating make less than $57,000 a year. the proliferation has occurred a specific need have led congress to create new ties a plan with different rules. some have questioned whether the plans and eligibility criteria needleast to confusion. they could change the default rules. as they continued their work, it is important that these vehicles affect average people who depend on these resources for their retirement. simplification, it increased participation middle income taxpayers. they also has simplify savings in their report on tax reform options. these are worthy of consideration and discussion. we also have an expert panel of witnesses that will evaluate how existing rules measure to these criteria. i would like to emphasize said the hearing is not about conclusions but making sure that as congress approaches reform, we do so with information. we have spent too much time acting first and asking later. we deserve better than and trial and error approach to policy. this is our opportunity to gather input and get the facts

we looked at irs data and found that the richest 0.1% pay tax rate of 27%. middle-class family gets about $75,000 a year ended pay a tax rate -- this is all taxes. the middle class is closer to 14%. there is very few rich people that are paying a lower federal tax rate than the middle class secretary or plumber. the average tax rate on a millionaire is twice as high as the tax rate on a secretary. the other thing that is interesting is if you look at the richest 1% in america today, the people at the very 1%, the bill gates of the world, they pay 40% of the total income tax. that is more than any time in the last 40 or 50 years. the idea that the return not paying their fair share is just not showed by the evidence. host: he writes -- critics point out that it would only raise $47 billion. guest: i think this is an odd way of looking at the budget. we have had the biggest spending spree virtually in the history of this country. we had the hundred billion dollars stimulus been -- plan of overspending. we had cash for clunkers, bailouts of auto industries. we

the issuance of fraudulent tax reforms they stunned -- and presented by the irs an upcoming report will provide further data. access to third-party income and withholding information at the time tax returns are processed is the single most important tool the irs could have to identify and prevent tax fraud. thank you for the opportunity to share my views. stay thank you inspector general george. mr. white. >> chairman platts, ranking member towns and members of the subcommittee i am pleased to be here to discuss the tax gap i.e. faith-based fraud and how to reduce them. the gross tax summarized on pages four and five of my statement, as you have heard, as was recently estimated by the irs to be $450 billion for tax year 2006. this is the amount the taxpayer should have paid but did not pay on time. no this is the amount unpaid for just one year. of this, the irs estimates, as you heard, that it will ultimately collect $65 billion from enforcement actions and payments by taxpayers waiting in that gap of $385 billion. one piece of context is that the tax gap has persisted at about the same level as the percen

that policy proposal was based in significant part on research that was done using the compliance data that irsevelops to estimate the tax gap. and so that is an example of how you can use that data to make changes to reduce the tax gap. it is estimated the first seven years of the basis reporting proposal bring in $7 billion. that is the reduction in the tax gap. in terms of information reporting, third-party information reporting, one of the advantages they are as i think has been discussed somewhat is irs can match the information to tax returns rather than having to do an audit. audits are labor-intensive, very costly for irs. more importantly, very burdensome on taxpayers. so this is an alternative for audits for enforcement processes. the difficulties in identifying new information reporting sources. there are some we have raised in recent report. some additional sources. >> if i can ask you, mr. towns if you don't mind, mr. connolly needs to run for a floor statement. if we can kind of go back and then we'll come back to those two examples of additional sources. is that okay? >> i think

i looked at the irs data for another column i've been working on and taxes went up incredibly in termslection. i looked back at the tax rates -- >> more people were working. >> not only were more people working, people who had been working less money were suddenly -- they were collecting tax president all of them going up. there were things like the national victory tax. i couldn't figure out why they'd gone up until i called the irs. >> after world war ii? >> as world war ii started. >> sure. but afterwards a lot of that stuff was put aside, which helps my argument. they got rid of that and allowed people to go back to work and pay. the revenues went up because there was a lot of people working. it was still flawed because we still had the fed to deal with and things came back but it was so much better than it had been after we got out of the way. germany's recovery was really when they decided to wage and price controls over there and rejected the american keynesian advice to put on wage and price control and europe recovered, especially in germany, by just not following our advice.

but the average person in the middle class, according to the irs data, pays under 15%.%. whereas the average person who makes over a million dollars a year pays close to 30%, which is -- they're already paying that. clearly the president is not interested in policy. he's interested in pushing politics. >> eric: let's talk with warren buffet for a second. he says he pays less than his secretary. what he's saying is not in dollars, he's saying that the rates he pay social security lower than his secretary. that's because he takes advantage of tax loopholes. >> steve: all legal. >> eric: also because he pays 15% tax rate on capital gains and dividends. you don't hear him talking about that. i did this a couple hours ago. i'll do it again. warren buffet, come on to the curvy couch, let's have a discussion about whether or not president obama should call his plan of taxing people over a million dollars at 30%, should he call that the buffet rule because i know and i've heard you say it before, you've said it's got to be a revamping of the tax code along the lines of simpson-

the irs says it's assigned hundreds more staff to help detect fraud, looking for mismatches with family and address data from past filings. but a deputy irs commissioner says it's hard to spot the phonies, especially with pressure to get refunds sent quickly. >> millions of taxpayers move every year. millions of taxpayers have children. millions of taxpayers change jobs. so we have to go through the process of validating, are you really who you say you are? >> reporter: how to protect yourself, number one, say the experts, safeguard your social security number, often the key to identity theft. don't use it as a password or enter it on a website. the irs will never ask for personal information in an e-mail. and something to think about for next year, file your tax return early so you get your refund before somebody else does. brian? >> pete williams at the irs to start us off tonight. pete, thanks. >>> on capitol hill today, a second day of congressional hearings on the lavish spending on trips by employees of the federal general services administration, the gsa, all of it right now being exposed. the ex

policy proposal was based in significant part on research that was done using the compliance data that the irsveloped the estimate the tax gap so that in a symbol of how you can use that data to make changes to reduce the tax gap. it's estimated of the first seven years of the basis reporting proposal brings in $7 billion. that's a reduction in the tax gap. in terms of information reporting, for third-party information reporting one of the ed vintage is there as i think has been discussed somewhat is that all irs can match that information to the tax returns rather than having to do an audit. audits are labor intensive, jury costly and more importantly this is an alternative to the audits for enforcement process these. the difficulty is in identifying new information reporting sources. there are some that we have raised in recent reports. one is the service -- >> if i can ask you if you don't mind, mr. connolly we are going to come back to those examples of additional sources is that okay? >> i would ask unanimous consent of my opening statement the would be entered into the record. i would re

that data shows a $450 billion gap between taxes owed and taxes voluntarily paid. the irs recovered approximately $65 billion of this amount making the net tax gap $385 billion. according to the national taxpayer advocate, the average household must pay approximately $3,400 or more for the government to raise the same revenue it would have collected if everyone paid their taxes in full. there are many causes of the tax gap, including intentional underreporting, failing to file taxes or math errors on those taxes that are filed. because of this we need a multi-facetted approach to achieve an effective and appropriate response and to close the tax gap. using third party information to verify tax returns could increase voluntary compliance. the treasury department has recommended increasing penalties for those who fail to comply with tax laws. simplifying the federal tax code could also help by making it easier to file taxes and reducing the opportunity to commit willful tax evasion. we will hear more from our witness today about solutions and how we can close the tax gap and

if the irs is going to make this realtime system work, i'm sure you'll want to spr all the data earlier than is required today. you'll probably want more 1099 data as well. looking at what's been discussed today, it seems compressing this reporting timeline will make it more challenging for reporting requirements for a very onerous and burdensome process right now. let me ask you this, what are you doing right now to work with existing stakeholders with the business community to kind of get their feedback, their buy-in as a part of this. there's no doubt that increased regulatory and compliance costs are a big deal now for employers. it's one of the reasons that i think the level of uncertainty, that this is a factor as well. have you conducted any studies of the increased costs to businesses of changing deadlines, for instance, for reporting informational returns or increasing reporting requirements? would you agree to an independent study as a part of that process? would that make sense? >> thank you, mr. paulson. great questions and an important set of issues. let me give you perspec

last may, the irs published the most recent data on the top 4 hirks taxpayers for the year 2008.that's how they did in that year. they had an average income of $270 million each. that's not bad. in fact, that's wonderful. that's part of what makes america great, but here's the crazy part to quote president reagan. on average, these 400 extremely high earning americans, $270 million in one year, actually paid an average federal tax rate of just 18.2% on adjusted gross income. we've spent a fair amount of time in the senate debating whether the top income tax rate should be 35% or something else like it was in the clinton boom years. .come a single filer would h . 18.2% or more in federal taxes. it is $39,350. if you look at the department of labor's wage levels, that's about what a truck driver on average earns in rhode island, $40,200 is what an average truck driver, according to the bureau of labor statistics, in rhode island, more than the $39,350, which means that they're probably paying actually a higher tax rate as a single truck driver in providence, rhode island, than a bi

the irs was one of the first institutions to deploy data processing on a large scale. and some of our original technologies, ones that hold hundreds of millions of taxpayer accounts and billions and trillions of pieces of data on taxpayers, were truly engineering marvels of their time. the problem is, now there are not a lot of people who remember how to keep running those systems and those people are dwindling. it is hard to keep them up and running. the second reason our systems are so old is because we have actually built an elaborate set of your systems on top of those older systems. -- newer systems on top of those older systems. some of the things like running calls or exams elections are being run on top of the old systems. but we also have a complicated, in a related set of systems that when you try to unbundle those, it makes the job even harder. the third reason we have been operating on old technology is because there has been a reluctance to fund our technology in a way commensurate with our mission. we spend less than 3% of our budget on long-term enhancem

but of course before there was all of this data collection, there were the manuals which she got out of the irs. and these are really important because although they didn't have the word law written on them, they were all about the law and what the government thought the law was and what the government thought the law was not. there was every reason these should be released because that's what we're supposed to know about our government, what the law is. there was of course no basis to withhold them and she prebailed in getting these manuals released. the one thing you have to say about irs manuals they are not very sexy. can you imagine being the public relations person who has to draft the press release, irs enforcement manual released today coupled by yawns. those of us who know how important those manuals are recognize the great service that sue did not only with regard to the manuals that she got released, but the precedent she set and what it told everybody else about having to disclose what the government is really doing and thinking about the obligations under the law. there is one othe

as irs commissioner, i got sworn in, there was a safety briefing and an information security briefing. that this house seriously we take it. the american people can feel very confident that their data is secured at the irs. >> what is the irs doing to encourage e-filing? >> we moved from 16% to 17 -- 77% in the last 15 years. that number is continuous -- continuing to go up. there are people who want to file on paper. let me tell you a little story. when i first got to the irs, i saw returns that had clearly been prepared on a computer that somebody had printed out, sent to us, and we had people typing and that return. that does not seem sufficient. i think the trend is moving in the direction. there will be a time when everything will be electronic. we also have an obligation to every american, not just the americans to use a computer. there are some people who do not use a computer for a variety of reasons. that number is dwindling. we want to make sure we serve every taxpayer. >> several nonprofits indicated on their application that they would not be spending any money to influence the election of candidates. then they spent millions on political ads. what have you not revoked

that is the no. 1 state of migration we are fortunate to have data from the irs going back to the 1970's that documents all the migration going on between states coming into america from abroad as well. the states are a microcosm for what people want, generally not just in their state government but in their federal government. if you look at migration going on, for the past five years it has been a period of the largest single migration within our borders we have never had as a matter of record. people are moving. they're looking for the new world. they are looking for a place they can go and have something they are not experiencing in the state they left. we decided to do a formal study on why people are moving. we took 15 or 20 variables people say are causing people to move such as the court system, the unemployment rate of the state, average income, the crime rate. we will try it. it turned out as of -- of all these variables people tout as being important, there are six that explain two thirds of all the migration going on amongst the states. those six are the personal income tax

thieves steal social security numbers and other personal data from the dead and the living and then file a return in their name. according to the irsy thieves tried to claim $6.5 billion last year alone, and the irs does not automatically cross-check all returns against employers' payroll records before a refund is issued. >> you're looking just in this one bucket over $3 million. worth of fraud. >> u.s. postal inspector tom boyle has even seen cases where multiple returns were filed using one stoelden i.d. >> right now the irs is so far behind in matching up the information, it's months before they even realize the money's been stolen. >> who are the victims in this case? >> well, the victim -- first -- there are multiple victims here. the first is that whose information and social security is compromised. and also the taxpayers who are paying hundreds of millions that's not going into the treasury or leaving the treasury. >> so a fraud against one taxpayer in this instance is a fraud against all taxpayers because it's coming out of the treasury. >> that's correct. >> in most cases they get the same penalties as anyone else, three

i did a recent study and we looked at the data from the irs. we found the richest 0.1% pay of federal tax rate of 27%. the average middle-class family pays an average federal tax rate close to 14%. there's very few very rich people paying a lower federal tax rate than a middle class secretary or plumber. the average tax rate on a millionaire is twice as high as the tax rate on the secretary. the other point that is interesting is if you look at the richest 1% in america today, the people like bill gates, one buffett, they pay about 40% of the total income tax burden their debts more than any time in the last 40 years or 50 years. i did that the rich are not paying their fair share of is not borne out by the evidence. host: he goes on to write -- guest: look, i think this is a flawed way of looking at the budget. we have had the biggest spending spree in the history of this country under president obama. the $800 billion stimulus plan of overspending. hundreds of billions of dollars of mortgage modification, bailout of the automobile industry an

fraud the social security numbers and other personal data from the debt and debt and living and then file a return in their name a court is the irsity thieves tried to claim $6.5 billion last year alone. >>> he's still got a former gang members who are now involved in a tax-free fund identity theft schemes because it is easier it is easy to do it is less violent and it's very lucrative. easy to do especially with electronic filing and the irs does not automatically cross check all returns against employers' payroll records before a refund position. u.s. postal inspector tom willis even seen cases where multiple returns were filed using one stolen identification right now the irs this so far in the matching of the information is months before they even realized the money's been stolen. >>> to the victims in this case? also the victim here is the american taxpayers because it is millions hundreds of dollars in the scheme is not going to the treasury in most cases the criminals to the same penalties as anyone else filing a false tax return about 35 years in prison. >>> for don ritter was not enough. all the people that did this to a

that is the no. 1 state of migration we are fortunate to have data from the irs going back to the 1970's that documents all the migration going on between states coming into america from abroad as well. the states are a microcosm for what people want, generally not just in their state government but in their federal government. if you look at migration going on, for the past five years it has been a period of the largest single migration within our borders we have never had as a matter of record. people are moving. they're looking for the new world. they are looking for a place they can go and have something they are not experiencing in the state they left. we decided to do a formal study on why people are moving. we took 15 or 20 variables people say are causing people to move such as the court system, the unemployment rate of the state, average income, the crime rate. we will try it. it turned out as of -- of all these variables people tout as being important, there are six that explain two thirds of all the migration going on amongst the states. those six are the personal income tax

the irs was one of the first institutions to deploy data processing on a large scale. and some of our original technologies, ones that hold hundreds of millions of taxpayer accounts and billions and trillions of pieces of data on taxpayers, were truly engineering marvels of their time. the problem is, now there are not a lot of people who remember how to keep running those systems and those people are dwindling. it is hard to keep them up and running. the second reason our systems are so old is because we have actually built an elaborate set of your systems on top of those older systems. -- newer systems on top of those older systems. some of the things like running calls or exams elections are being run on top of the old systems. but we also have a complicated, in a related set of systems that when you try to unbundle those, it makes the job even harder. the third reason we have been operating on old technology is because there has been a reluctance to fund our technology in a way commensurate with our mission. we spend less than 3% of our budget on long-term enhancem

irs extended the deadline until tuesday, the 17th. but a word of caution if you're on the roads on tuesday. researchers combed through 30 years of data and concluded the number of traffic fatalities increases on tax deadline day by 6%. now, they couldn't pin down exactly why that's happening but they speculate that drivers may be more stressed and distracted than usual. so the word, michelle, get your taxes in early. >> you think? >> you think. >> you think. drew levinson here in new york, thank you, drew. >>> well, straight ahead, your wednesday morning weather. and in sports, ozzie's lament. he'll sit out a few games after riling miami's cuban baseball fans by praising fidel castro. astro. cajun raw seafood pizza parlor french fondue tex-mex fro-yo tapas puck chinese takeout taco truck free range chicken pancake stack baked alaska 5% cash back. right now, get 5% cash back at restaurants. it pays to discover. did you know that acids in everyday foods can soften and wear away tooth enamel? once enamel's gone, it's gone for good. try... it uses an innovative gel-to-foam technology to surround your teeth, protecting them from the effec

data for six years. the wrangler is among chrysler's most popular vehicles. your chances of a tax audit are less this year. the irs is facing budget cuts, a hiring freeze, and in increasingly complex tax code and are dealing with a surge in tax code identity fraud. a survey finds the top profession in the u.s. is software engineer fall by actuary and human resource manager. that's america's money. >> thanks so much. it will be standing room only later today at the nationals home opener. >> you should get ready for a new experience. john gonzales is bringing his n attitude to is this morning. >> this is the fifth year at nationals park. we talked about the new circus. the fans are extra excited and there is a new look. to the first 20,000 fans, this is a giveaway and there is a talk about a new n attitude. what is this all about? >> welcome to opening day at nationals park. there is a new nattitude from the players. they never give up. they are always in the game and they never say die. it comes from our fans, too. it is an exciting time for the team. there's a big buzz around the club and it is a new day at nation

data for six years. the wrangler is among the most popular in and the company cannot make them fast enough. >>> the chances of a tax audit is a little less this year. the irs is facing budget cuts, a hiring freeze and a complex tax code. the surge in the tax code, identity fraud is diverting the agency's resources. >> not that we're encouraging dishonesty out there. just want to put it out there. >>> and the top profession in the u.s. is -- broadcaster, or not. software engineer. followed by actuary, and human resources manager. career casts looked at work environment, job outlook and income. the worst jobs in america, lumberjack, dairy former, and enlisted soldier. broadcaster is the tenth-worst job. not very affirming. >> took some wrong turns in our career. >> mom and dad must be so proud of us. >>> coming up next on this thursday, if we decide to come back. a hospital miracle. grieving parents find their baby very much alive. >>> and road rage in the new car showroom. we're right back. ♪ [ female announcer ] walgreens introduces...nice! [ woman ] i got it. where's your brother? [ dog barking ] ♪ [ telephone rings ] [ dad ] hello. [ female announcer ] q

afternoon, remarks from irs commissioner on his agency's effort to modernize while improving customer service and enforcement. those improvements likely will include a taxpayer data base and tax code reform. he will be speaking of the national press club and he conceded live starting at 1:00 p.m. eastern here on c-span. after that, president obama