I found this news story interesting.
The basic premise is that the IRS audited Rachel Porcaro, a Supercuts employee who earns $18,000 that year. The reason was that the IRS had determined a family needed at least $36,000 to survive in Seattle, and she had made significantly below that amount. They felt that Porcaro must have some income hidden somewhere, as it was impossible to live in such an expensive area on such a low income. It gets crazier when they were not able to prove any fraud on her part. I'll let you read the story and judge for yourself.
I read this with interest, because I know that my husband and I have survived on very little money before. We've earned so little at points that I'm sure we easily could have been in the same position as Porcaro. When we first married, many of our clothes, furniture, and other items were dumpster dived. We shopped at thrift stores on half price days. We did our best to get our grocery bill as low as humanly possible. We often went to lectures and events at our Universities that advertised things like "free pizza' or "refreshments served" to save money.
In short, on paper, it's possible that it looked like we could not live in our somewhat expensive town, especially without debt or loans from family. But we were. Through grace and faith and creativity and determination, we were.
It is possible to to do the impossibe sometimes.
I'm not sure how we would have provided receipts for our dumpster dived treasures and free refreshments if this audit had happened to us. I'm not sure what we would have done, as we had to assets to speak of, unless they wanted our late '80s/early '90's cars. Perhaps they could have garnished the $5.15/hr I was earning as a maid for one of those services. Who knows?
I'm sure fraud happens, but I hate the idea that somebody could just decide that there's no way you're living on what you earn. It can happen. It does happen. I know I'm not the only one who could have been in her position if the IRS had cared to take a look at our income and compared it to the typical expenses in the area.
Freaky.
5 comments:
My first clue how she's able to survive at that income was the part about her living with her parents. That alone was telling me that she was probably getting a discount on the rent and had family support for the moments she needed somebody to watch her boys and such.
But still! That was pretty darn unbelievable. It's not like she was driving 200 miles a day in a Mercedes. I sure hope I'm not in her shoes someday, as I don't work, and with a baby on the way... we'll be able to get more tax deductions than before.
Wow I can't believe that article. It's so ridiculous! I live in a HCOLA area and I worked in financial aid a few years back. I'd have kids, yes kids (18 years old) come in for financial aid at my school, claiming two children (that were theirs), yet they made about 5k or less...they never got audited, and they PLAY the system! Welfare, food stamps, etc. and they too lived w/ the parents, did not pay rent, etc. So sad.
And here I am trying to get a job with the IRS....ugh.
This is RIDICULOUS, in a number of ways. I get a daily reminder of how expensive Seattle is, of course. On the other hand, there's such a large counter-culture here--lots of bargaining, lots of rogue P-Patches, chicken coops, etc--that I know a lot of people who live on 12,000 or less. Not families, though. That is a whole new level of challenge, but I believe you could do it. (And obviously, you can.) There is such a disconnect between government agencies--work hard so we don't have to give you welfare! But don't SAVE MONEY, for God's sake--you're supposed to make at least so-and-so amount so you can pursue the American Dream. Also, so you can PAY US HIGHER TAXES. /rant
That's such a shame and a little on the scary side. Goes to show how messed up our system truly is. I hope that she's reimbursed for all of the hassle and money she's been forced to go through not to mention being allowed to once again claim her children as the dependants that they are.
Wow. That's sad. So many of us have lived the same way. Have'nt the heard of Trash to Treasure. Especially women, we can make a 50cent outfit look like it came from Macys.
Post a Comment