Wednesday, December 12, 2007

Kinder, Gentler IRS No More

Recently, the IRS has begun rolling out new policies and new standards for dealing with delinquent taxpayers. It seems that the kindler, gentler approach that came to exist following the 1998 IRS Restructuring and Reform Act failed to produce increased compliance.

So, "treat 'em nice and they'll comply" has failed, so the IRS seems to be reverting to the "carry a big stick...and use it and then they'll comply" methodology that ran rampant prior to 1998. One particularly painful example of this phenomenon is the IRS' insistence on leaving wage levies in place until an agreement can be reached (for taxpayers owing more than $25,000), a process that can take months before IRS collections managers grant their final stamp of approval to the agreement.

If you're a delinquent taxpayer, deal with the problem before it reaches the point of a levy. You'll find the IRS much easier to deal with if you'll be responsive and proactive before they go to all the trouble of taking money from your bank account and/or paycheck. If you need a tax consultant to help you with this process, then find a reputable representative to assist you, but in either case, be sure to work with the IRS early in the process and you'll be glad you did.

1 comment:

Anonymous said...

Very well spoken Brian, I enjoyed reading your post as usual !

Diane