Tax enforcement numbers for 2008 are among the highest in a decade and struggling taxpayers need to know their IRS tax relief options in order to save time, money and frustration. Expect 2009 IRS collection numbers to keep pace or exceed that of previous years!
At every level, the IRS has become increasingly aggressive in pursuing non-filers and tax cheats. In 2008, nearly 1.4 million Americans were audited and the IRS collected $56.4 billion - $7.7 billion more than in 2006. This was only slightly down from 2007's record year of $59.2 billion.
The IRS is doing everything and anything it can in its considerable and unbridled power to investigate and curb tax evasion, from simple audits to examinations of complex, multinational tax shelter programs.
Last year, the IRS stepped up its investigations of offshore accounts used to hide income and evade taxes. The agency has begun to examine these accounts - and the taxpayers who use them - using the same tools that criminal investigators use.
And this situation isn't likely to change. With the economy down and tax revenues decreased, Uncle Sam's tax-collecting agency is going to take every step it can to collect what's due. Be warned.
In fiscal-year 2008, the IRS collected $56.4 billion through collection, examination and document-matching efforts. That figure is a dramatic increase from 1999, when the government had $32.9 billion in enforcement collections.
But the most dramatic figure in the recent numbers comes in the staffing column. Even as the IRS collected nearly twice as much last year as it did in 1999, the agency accomplished this with fewer enforcement staff members - 20,722 in 2008, compared to 22,543 in 2007 - suggesting the government is becoming more efficient even as it becomes more aggressive.
These numbers should be a wake-up call for those who continue to evade taxes by improperly writing off personal expenses to businesses, underreporting income, or using offshore trusts to conceal income. The trend towards tougher enforcement against tax avoidance means that more Americans than ever will need to know their options for income and payroll tax relief and IRS help.
Knowing how to get expert IRS tax help and learning about options that are available to you as a taxpayer can save you time, money and frustration.
The best thing for taxpayers in difficult financial situations to do is file their tax return, pay what they can and work with the IRS to establish a payment plan that will keep them compliant. And while the IRS offers payment options for struggling taxpayers to help them reduce their tax debt, they will still need a specialized tax professional to permanently solve their problems with the IRS. You cannot do this on your own! You are way out of your league if you think you can. You need the help of a seasoned and experience tax attorney or Certified Tax Resolution Specialist who has decades long relationships with the IRS.
For instance, a Certified Tax Resolution Specialist can negotiate the lowest possible monthly payments and work out an installment agreement over 7 years instead of 5. Additionally, they may be able to work with the IRS to get levies released a lot quicker.
Other tax resolution strategies include offer in compromise, abatement of penalties due to reasonable cause, analyzing the statute of limitation to assess, and collect and negotiating that your account be placed in a "currently not collectible" status so that you will not be required to make payments and the IRS will not pursue collection action.
Both individuals and small businesses are at a big disadvantage if they try to face the IRS alone. They need expert representation from a specialized tax attorney or Certified Tax Resolution Specialist - or they risk the IRS managing their cash flow via financially debilitating levies. I always tell people who are struggling to overcome their tax burdens that knowledge is power and the key to gaining a new lease on your financial life.
For more information on achieving a tax resolution for your IRS problems, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Michael Rozbruch, one of the nation's leading tax experts, is a Certified Tax Resolution Specialist (CTRS), licensed CPA in the state of Maryland and the founder of Tax Resolution Services (http://www.taxresolution.com/). He teams up with an expert staff of tax attorneys, CPAs, and tax relief professionals to help individuals and small businesses solve their IRS problems with tax liens, unfiled back taxes, offers in compromise, wage levies, tax relief, delinquent returns, tax debt installment plans, bankruptcy and protecting an innocent spouse from unfair tax burdens.
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