If you can’t afford your tax bill this year, know that the IRS offers payment options for struggling taxpayers.
While individuals are urged to file their tax returns and and pay any taxes owed by April 15, the agency is aware that the economic downturn has made this difficult for many people.

Taxpayers who do not file their tax returns by the April 15 deadline may be subject to a failure-to-file penalty.
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Taxpayers can get in tax trouble because of their spouses or (ex-spouse’s) financial problems – but the good news is the IRS has guidelines for innocent spouse relief.  And in a recent email, the Chief Counsel’s office has just released additional guidelines on the sharing of information in these types of cases.
CCH (http://tax.cchgroup.com/) reports:
The Chief Counsel’s Office has provided guidance, in an e-mail, regarding the sharing by the IRS, in
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If you haven’t filed your 2008 tax return, haven’t paid your your taxes owed, or are requesting an extension of time for filing, the IRS has issued last minute tax tips that can help you in these final hours.
Knowing how to get tax help and learning about options that are available to you as a taxpayer can save you time, money and frustration in the long run. For instance, if
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The Los Angeles Times released a list of California taxpayers with the largest delinquent income tax bills who together owe $143 million in back taxes.
While O.J. Simpson and his $1.5 million bill have been taken off the list (after being sentence to 9 years in prison), Dionne Warwick (who owes $2.18 million) and Burt Reynolds (who owes $225,000) are among the notable names on the list of 250 people with
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The IRS urges taxpayers who need additional time to complete their tax returns to e-file their requests for extensions by April 15. All taxpayers can e-file a Form 4868, Automatic Extension of Time to File at no cost from a home computer. This is a convenient and secure way to receive confirmation of your extension for your records.
The extension gives taxpayers 6 more months or until October 15 to file
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In attempts to close the tax gap, the IRS is increasing tax compliance and aggressively taking action against tax cheats and tax promoters. As the tax gap grows, more Americans than ever will be facing audits and the IRS will be re-asserting it’s position on individuals who maintain frivolous arguments for not paying their taxes.
CCH (http://tax.cchgroup.com/) reports:
Sanctions were properly imposed on an individual who advanced a frivolous argument that he was not
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Kansas Gov. Kathleen Sebelius, Obama’s pick to head the Department of Health and Human Services, did not pay $7,040 in taxes between 2005 and 2007. She paid the back taxes and penalty after they were identified.
In addition to Sebelius, five other Obama administration nominees have come under fire for unpaid taxes including Tom Daschle and Timothy F. Geithner. Labor secretary Hilda L. Solis  had to answer questions about $6,400 in
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The Senate is expected to approve a 2010 budget that includes $825 billion in tax relief over the next five years.
The budget resolution offers tax help targeted largely to the middle class and would extend the 2001 and 2003 middle-class tax cuts enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 over the five-year span of
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Many people may qualify for a significant reduction in their tax burden if they qualify for an educational tax break from the IRS. While there are tax benefits available for college and other post-secondary expenses, trying to figure out if and how your qualify for the various benefits can be confusing.
It can be difficult to determine which breaks you are eligible for and what will produce the greatest benefit. When
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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
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The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.
“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction
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Bloomberg News columnist John M. Berry makes some interesting points regarding President Obama’s new task force created to close the tax gap by focusing on closing loopholes, streamlining tax code and generating revenue.
“It may not accomplish much,” he says.
Highlights from the article include:
With April 15 fast approaching, stronger enforcement and a lot more resources for the Internal Revenue Service should head the administration’s to-do list.
The tax code could be undoubtedly
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According to a recent article in the Wall Street Journal, a push by the IRS to be more aggressive with wealthy taxpayers means that it’s critical to know the common tax audit red flags.
The IRS has been strongly disputing a report this week from the Transactional Records Access Clearinghouse that says audits of the wealthy Americans have significantly dropped off.
Taxpayers who make more than $10 million a year or more
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The IRS announced new voluntary disclosure practices for offshore account holders. Voluntary disclosure can help taxpayers avoid prosecution for possible tax evasion and reduce taxes, penalties, and interest owed.  The IRS offers leniency for voluntary disclosure and Americans with IRS tax problems should take advantage of this policy to mitigate legal problems later.
While taxpayers can participate in the voluntary disclosure program before the IRS has initiated a civil or criminal
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I recently appeared on The Chuck Morse Show on WBNW 1120AM (Boston, MA) to encourage taxpayers to file thier taxes by April 15 – even if they don’t have the money to pay the taxes they owe to Uncle Sam.
There’s going to be a lot of people caught up in this recession, and they’ll quickly find out that they owe taxes for 2008, if they don’t know that already. I
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