The uptick in enforcement is all for the greater good of maintaining a voluntary tax compliance system, the report says.

FORBES: More IRS Cops, More Audits, Says Treasury Report

Peter Kenway, co-author of the report, said that the tax credits system was tackling the symptoms, not the root cause, of the issue that many people were not getting enough income despite doing many hours of work each week.

BBC: Poverty on the rise, says Joseph Rowntree report

You may report your use tax for purchases made in 2012 and later directly to us using our eReg system or, for your convenience, you may report and pay your use tax on your California income tax return.

FORBES: Connect

By Nicolas Colin, author of a controversial new report commissioned by the French Government about the tax system and the digital economy.

FORBES: Corporate Tax 2.0: Why France and the World Need a New Tax System for the Digital Age

The IoD report says under an open-ended system, a graduate tax becomes the student loan you never pay off and would be "a tax on effort and merit".

BBC: Graduate tax 'could hit UK's competitiveness'

But Ms. Vick failed to foresee that the system would automatically report the fake employees to a state payroll-tax agency as if they were new hires at an actual company.

WSJ: Better Ideas Through Failure

In fact, in her annual report to Congress last year, IRS National Taxpayer Advocate Nina Olson said lack of transparency in the tax system was among the most serious problems encountered by taxpayers.

FORBES: Magazine Article