With Tax Revenue Down and Government Spending Up, Individuals with Tax Problems Will Be Targeted By IRS
I recently appeared as the tax expert on Financial Lifeline Radio with hosts Dave Harbison and John March.We talked about all the tax buzz this year. It’s almost become a cultural movement in this bad economy with everyone struggling with tax debt - we’re seeing all the tax tea parties and stimulus packages making headlines.
Not to mention, it seems like you must have tax problems to be nominated by the Obama administration!
But seriously… If the government really wanted to stimulate the economy, they should have everyone who owed $50,000 or less not pay any taxes OR have the individual choose one year that they don’t pay taxes in the next 3 years. That would really stimulate the economy. Not these $600 or $1200 stimulus payments – that’s just going to go toward paying your credit card or other debt.
So far this fiscal year, tax revenue is down 14% and government spending is up 33%!
And I expect the Treasury will be down about $500 billion in collections this year. They usually collect about $3 trillion in tax revenue but will probably only receive about 2.5 trillion this year.
The government will have to make up the money by going after the tax gap – the non-filers, tax cheats, people who overstate deductions and understate income. And 85% of that $345 billion tax gap is due to self-employed individuals – the independent contractors who don’t get a 1099 the way large businesses do.
In this current climate, the IRS will be cracking down on small businessess with increased tax audits and aggressive collection tactics including bank levies. However, it’s just as important for individuals to know the consequences of not filing their taxes. April 15 may have come and gone, but it’s not too late to file your delinquent tax returns!
Listen to the full interview from Financial Lifeline Radio here.
** If you have unfiled tax returns or other IRS problems, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. 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:
- No Income Tax Rate Increase Until 2011 But Expect Increased IRS Audits of Tax Returns in Near Future
- Have You Filed Your Taxes? Consequences Include Increased Financial Liability and Imprisonment
- Is there a Double Standard for Delinquent Taxpayers and Tax Cheats That Favors Powerful Individuals?
- Income Tax Relief Advice for the 35 Million Taxpayers Currently in Trouble with the IRS
- Obama Proposes Doubling Tax Law Enforcement Budget and Seeks $400 Million Funding Boost for IRS Enforcement Activities
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