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On Jan. 20, the IRS released a memorandum (SB/SE 05-0112-013) to its collection employees, formally implementing policy changes to the streamlined installment agreement. These changes come with a new Form 9465-FS, Installment Agreement Request, released last month by the IRS but without any guidance. According to the form’s instructions, individuals with unpaid liabilities of more than $25,000 and less than $50,000 can use this form to request an IRS direct debit installment agreement to full... Read Full Story

While most of us were celebrating the holidays, the IRS was making changes to its systems, processes and forms. This year, the IRS made a significant change to how it will collect unpaid balances from individuals and people paying certain business tax liabilities who owe between $25,000 and $50,000. These changes will affect how tax practitioners help their clients with IRS collection issues. On Dec. 31, 2011, the IRS released Form 9465-FS, Installment Agreement Request. Individuals with... Read Full Story

In an effort to decrease the widening national debt and tax gap, the General Accounting Office is recommending that Congress and the IRS consider revoking and denying passports to those who owe tax debts to the Federal government. With the Nation’s debt approaching $14 trillion and the tax gap, in 2001 numbers, at $345 billion annually, the GAO is recommending using trusted debt collection methods to collect on past due tax debts. Currently, the Department of State currently screens passport... Read Full Story

Each year, about 20 million taxpayers owe taxes when they file their tax return. On September 30, 2010, the number of taxpayers with serious tax delinquencies grew to over 10 million. With the economy only marginally better and unemployment still at recession levels, the trend looks to continue. What can you do if you owe on April 15th? Here are 8 consumer tips that you should follow to save you money and ensure that you do not become a tax debtor again. #1: Whatever you do, save up to 25% by... Read Full Story

AARP is under the fire again over whether is a legitimate tax-exempt organization or just a disguised for-profit company. Specifically, AARP is under attack for receiving $657 million in royalty revenue from insurance contracts in 2009. There is a history here. In the last decade, AARP and the IRS disputed the taxability of some of the same proceeds, i.e. was the royalty income received by AARP for such contracts actually related to their "exempt purpose" - i.e. advocating for senior citizens... Read Full Story

Over 19 million Americans may have to wait to late February to file their tax returns and get their refunds The IRS announced today that over 19 million Americans may have to wait to file their tax returns due to the late tax breaks passed by Congress this week. The IRS will need until mid to late February to change its forms and systems to accept those who were affected by three reinstated deductions: those who itemize and take the state and local sales tax deduction- primarily benefiting... Read Full Story

13.4 million Americans were or will be negatively affected by the Making Work Pay Credit in 2009 and 2010 On December 16 th , 2010, the Treasury Inspector General for Tax Administration (" TIGTA "), the IRS' internal watchdog, released a report about the negative affects of the Making Work Pay Credit for 2009 and 2010. The Making Work Pay Credit is a 2009 stimulus provision that would allow up to an $800 credit for working couples ($400 for single taxpayers and $250 for certain retirees) on... Read Full Story

As the recession continues, More Americans owe and cannot pay the IRS Many believe the longest economic downturn since the Great Depression is over. However, for the unemployed and those who had to sustain by taking on debt, it seems like the recession never ends. It appears Congress may extend long term unemployment benefits that will help more than 2 million Americans whose benefits were due to expire this month. But, absent on the mind of Congress are any tax breaks for the unemployed in... Read Full Story

Recently, I received a comment from a reader who stated (and I paraphrase), "Don't scare me and don't always send me to an accountant to fix a problem." The reader was anonymous - and the reader was correct. So, first, let me apologize to "anonymous" and to any other of my readers who does not feel empowered information on this website. To "anonymous"- again, I apologize profusely - this blog is meant to empower you. Specifically, the site is meant to do two things: 1. Empower consumers to... Read Full Story

Each year, 140 million taxpayers file their tax return hoping that it will not be audited by the IRS. If fact, a study done by the independent IRS help website easyIRS.com shows that being subject to an IRS audit is the biggest concern of taxpayers. Last year, that concern was a reality for almost 1.6 million individual and business taxpayers who were audited by the IRS. This year, with increasing pressure from the Congress to shrink the “tax gap” (the difference between what taxpayers... Read Full Story