AUGUSTA, Maine — So-called tax zapper computer programs that help tax cheats in Maine would be banned under a bill up for legislative review.
The Taxation Committee on Tuesday afternoon holds a hearing on Rep. Seth Berry’s bill, which is aimed at software programs that falsify electronic sales records so businesses can underreport the totals and lower their sales tax bills.
Berry, a Democrat from Bowdoinham, says the state loses about $10 million a year in revenues because of the zapper programs. The tax-evading programs have been detected in other states and countries and now Maine tax officials are expressing concerns about them.
Berry’s bill would reduce penalties for those who correct and fully report any previously underreported sales records before Sept. 1, 2012. But their financial liabilities would not be reduced.
Falsifying tax records is already illegal. LD1764 is so vaguely worded that it gives more arbitrary, discretionary power to Maine Revenue Services to make anyone into a “criminal” who uses virtually any software to process “sales” when MRS doesn’t like their tax returns: The agency has the power to make “estimates” of taxes it demands and the power to make bureaucratic accusations and “interpretations” of the law under which the victim has to prove his innocence and prove MRS wrong. MRS exploits this discretionary power to brutally bully innocent people under non-objective law, giving this agency dictatorial powers. More vague law allowing more MRS “interpretations” of software cannot be stopped in court once the vague law takes effect. The last thing we need is for MRS to have the power to decree the use of software to be criminal when it is hounding someone. This is a civil rights nightmare. This agency needs to be reined in and reformed, not given more discretionary power.
We citizens should band together and distribute a free shareware version of Tax Zapper.
The best way to kill a tumor is to cut off its blood supply.
This is a ridiculous idea. It’s the tax cheaters that should be punished regardless of the software they use. I assume that they collected tax from customers and are stealing it from the state. It seems like increased penalties for that criminal act would do more to reduce the loss.
Theres already a tax zapper program out there. 48% pay no fed income taxes. The democrats and there giveaways to buy votes have already zapped the rest of us.