In the past year or two the IRS has manged to organize their data mining capabilities into a "useful" automatic auditing tool. The IRS is cross checking tax returns with "third party information". Bank records and soon credit card transactions.
The program was supposed to catch the wealthy tax cheats hiding their money and collect hundreds of billions of tax revenue. It turns out that what these robo-audits do best is catching poor people who try to claim the Earned Income Tax Credit and have some un-reported income on the side, only collecting a couple of billion.
People are complaining about what the NSA could do with the data they collect. This article is about what the CFPB might do. I am more concerned about what the IRS is actually doing with their data mining. Catching the people who have the most to loose and the least chance of hiding their tracks. The working poor.
The IRS data mining is an actual example of how data mining by the government can backfire. Rather than catching wealthy tax cheats hiding their millions, it caches poor people.
Rather than focusing on "maybes" and "what ifs" of the NSA and the CFPB. Shouldn't we be more concerned about what the IRS is currently doing? Effectively targeting the working poor.
BTW, do you have an eBay business that earns you a couple of thou a year? Expect to pay income tax on it in the next couple of years.