Today – Tax Day – could be your latest reminder to settle your tax debt or come clean with the IRS!
The big day has arrived!
April ushers in the most dreaded day of the year for many Americans — Tax Day.
Given how the Great Recession has stalled the economy over the last three years and directly affected most Americans’ pocketbooks, this year’s Tax Day will no doubt be even more dreaded for many consumers.
For Americans with tax debts, Tax Day is another marker — another year of tax debt stacked on the pile.
For Americans who are cheating on their taxes, Tax Day is a cruel reminder that their luck just might run out.
So as I ask all of my current and prospective clients this time of year, are you at ease with the Internal Revenue Service?
If the answer to that question is no, then now is time for you to take the appropriate steps and eliminate your tax problems once and for all.
And I’m going to give you a great reason why there’s never been a better time to erase your tax debt or come clean on your tax cheating: The IRS today is more aggressive and more capable than ever before in its history.
Don’t believe me? Consider:
- The IRS continues to aggressively pursue taxpayers who hide money overseas. “We have changed the risk calculus,” IRS Commissioner Douglas H. Shulman said during a December speech. “Americans now understand that if they try to hide assets overseas, the chances of being caught will only continue to grow.”
- The tax audit rate is very high. At 1.11 percent, about 1 of every 100 U.S. taxpayers is being audited. It’s even worse for high-income taxpayers. In 2010, the IRS audited nearly 2 of every 10 tax returns reporting more than $10 million in income.
- Taking a page out of Google’s winning formula, the IRS will begin using an algorithm to analyze incoming tax returns in an effort to identify returns most likely containing mistakes, tax fraud or underreported income. Those identified reports will then be forwarded to IRS agents for examination.
Up and down the economic spectrum, the IRS is more dynamically pursuing tax cheats and underreported and unpaid taxes.
For example, the IRS is now going after celebrity couple Robin Thicke and Paula Patton. R&B singer Thicke and actress Patton owe more than $492,000 after failing to pay taxes two years in row.
By contrast, a pizzeria owner in suburban Pennsylvania is going to prison after not reporting 50 percent of his gross receipts.
Smack in the middle of those two cases are taxpayers like you.
Could you be next?
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