The tax gap in the United States is estimated to be about $385 billion. The tax gap is the difference between what the Internal Revenue Service (IRS) expects to collect in taxes and what they actually collect. That sounds like a lot of money. And I agree that it is. But considering that the IRS … Read more
Taxes From A To Z: G Is For Garnished Wages.
Tax revenues are on track to hit a historic $3 trillion in 2014. Why are tax revenues increasing? And what does it mean going forward?
With tax fraud – especially identity theft related tax fraud – there can be huge dollars at stake. Criminals use that money to finance high-profile, high-spending lifestyles at taxpayer expense. But when their luck finally runs out, what happens next?
If you owe money to the federal government, your federal income tax refund can be seized to satisfy your debt. This is often referred to as “offset” since the seizures are part of the Treasury Offset Program (TOP); the program is administered by Financial Management Service, a branch of the U.S. Department of Treasury. Examples … Read more
IRS Commissioner Doug Shulman has announced that the IRS will not renew its contracts with two private debt collection agencies. Those contracts expire this year. You may recall that I was not a fan of turning over collections matters to private companies. Like many other tax professionals, I had concerns about the tactics used by … Read more
My recent post about an Offer in Compromise (where a taxpayer pays less than their existing liability as part of a deal) gone bad is in stark contrast to a rosier picture painted by CBS News. CBS seems to imply that offers are a bad idea because they reward those with outstanding tax liabilities by … Read more
Apparently not. It’s rare that I blog about client matters. I like to keep them private for a variety of reasons not the least of which are ethical considerations. But a recent client matter has me steamed. Really steamed. And it’s blog worthy. I’ll keep it generic. Client had a tax matter that needed immediate … Read more
The House has approved legislation that would end the extremely unpopular program that allows private collection agencies to collect tax debts for the IRS. The IRS had previously argued that the policy was not financially viable. Of the $32 million brought in since the collection bill went into effect, the IRS collected $7 million on … Read more
What? You think that’s crazy talk? You would if you have been following the debacle that is allowing private debt collectors to pursue the collection of taxes even though it is more expensive and is expected to collect fewer tax dollars. Government at its finest, no? Concerns about privatizing tax collections have included privacy issues, … Read more