Tax Relief News: Changes in Tax Breaks on the Horizon

With the nations budget deficit increasing and negotiations over what to do about the debt ceiling still raging on, taxpayers should be looking out for changes in “relief providing” tax breaks in upcoming years. Currently the tax breaks that most tax payers rely on for tax relief could be at risk of being cut from the books.  Laura Saunders of the Wall Street Journal explores the future of your tax breaks in her article Preparing For D-Day: When Congress Takes Your Deductions.

Tax breaks and tax deductions currently save taxpayers some serious money, help provide tax relief and keep people out of trouble with the IRS. However, these deductions also cost the government a lot of money in forgone tax revenues. “…the top 10 individual tax breaks will cost more than $3 trillion in forgone tax revenues between 2010 and 2014 [and] the top 10 corporate tax breaks will cost only $350 billion over the same period.”

Currently Congress sees these uncollected revenues as a chance to help with our current budget crisis and is proposing the creation a reformed budget that taps into these breaks. ” … Senate Finance Committee member Tom Coburn… released a budget plan he calls “Back in Black”. [A] $9 trillion, 10-year package of debt-reducing measures includes $1 trillion in reclaimed tax breaks.”

As the debate about our government debt crisis continues it is important to stay educated on the current and changing rules on taxes and deductions.  Paying attention to the tax rules now can save you from a load of IRS tax problems in the future.

More Tax Help, IRS News and Tax Relief Tips:

  1. Tax Relief News: IRS Announces New Mileage Rates for 2011

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2 Responses to “Tax Relief News: Changes in Tax Breaks on the Horizon”

  1. Tax Attorney Resources and Tips to Help Resolve IRS Tax Problems Says:

    [...] these times of budget crisis. TRS blogged about the potential, near future, changes in tax breaks here. Staying up to date on changes in the tax climate is a great way to stay out of trouble with the IRS [...]

  2. Tax Relief News: Mortgage Tax Breaks on the Brink | Tax Attorney and Tax Resolution Services: IRS Help Blog Says:

    [...] will cost the government $3 trillion in lost tax revenues between 2010 and 2014 (read the blog here) and now a closer look at current taxpayer trends by the Tax Policy Center states that almost half [...]

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