I recently blogged about the federal budget forecast for a $1.8 trillion deficit. There is close to a $400 billion tax gap each year.  This means that taxpayers paid $400 billion less than they should have.  Collecting  these funds through more aggressive collection tactics by the IRS will be politically more appealing than raising taxes - so taxpayers beware!

Closing the tax gap will require greater IRS enforcement for individuals as well as businesses - both big and small. The current economic downturn may encourage struggling businesses to cheat on their taxes - resulting in an even larger tax gap than prior years.

Meanwhile, it was recently reported that 13 companies who received TARP funds owed millions of dollars in back taxes. While the IRS has the means to collect that money, it is unclear whether the Internal Revenue Service has taken any steps to recover unpaid tax money from the TARP recipients.

This can have the appearance of a double standard on who has to pay taxes and who does not.  If you’re “too big to fail” you get a pass… for now.  But, if you’re not on the “too big to fail” list watch out!

We are seeing a noticeable increase in small corps , LLCs and sole proprietors getting behind on payroll tax deposits as a result of the downturn in the economy.  And the IRS is not turning a blind eye.  The small business owner is at a big disadvantage if they try to go it alone.  They need expert representation or they risk the IRS ‘managing their cashflow via levies.’

** If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site  for a free tax relief consultation or call us at 866-IRS-PROBLEMS.

More Tax Help, IRS News and Tax Relief Tips:

1. Tele-Seminar Featuring Insider Secrets of Tax Relief for Small Business Owners on February 18, 2009
2. No Income Tax Rate Increase Until 2011 But Expect Increased IRS Audits of Tax Returns in Near Future
3. We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
4. Why the IRS Picks on Small Businesses and How to Avoid Triggering an Audit
5. Is there a Double Standard for Delinquent Taxpayers and Tax Cheats That Favors Powerful Individuals?

Tags: Back Taxes, federal deficit, IRS enforcement, IRS levies, Michael Rozbruch, Payroll Tax Problems, small business, small business tax help, small business tax problems, small business taxes, tax expert, tax help, tax relief, tax resolution, tax resolution expert, tax resolution services, Tax Tips

This entry was posted on Wednesday, April 1st, 2009 at 7:31 am and is filed under Tax news and tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.