Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Truax.net: a Glimmer of Hope?

By William D. Truax Subscribe to RSS | December 8th 2011 | Views:
loading
 
  



The last few articles I have written have been concerned with tough times, either economically or socially or especially as regards taxes and the collections thereof. Fortunately, there have been some recent developments which show that there may be some hope on the horizon.

Right now we are overall in the midst of some fairly tough times economically. Unemployment is way up, stores are closing, prices have gone a little bit crazy and there are various other indications of a general economic downturn. In the midst of all this, the IRS has seen fit to announce a very substantial change in their policy as regards tax collections. In a nutshell, the Commissioner of IRS has, as of early January 2009, instructed his troops in the field to cut the taxpayers who own money to the government a little bit of slack. This doesn’t mean to stop trying to collect the money; but it does mean that the IRS will be a little bit more reasonable about the manner in which they try to collect this money.

For example, the Offer in Compromise program was pretty effectively gutted over the past several years by a combination of IRS and congregational actions. For the most recent reporting year, over 75% of all submitted Offers were rejected. Combine this with the following facts: a) taxpayers now have to submit 20% of their total Offer amount along with their Offer in order for it to be a valid Offer; b) the IRS gets to keep that money whether the Offer is accepted or rejected; and c) The amount the IRS would accept as a valid Offer was based on the most incredibly optimistic interpretation possible of that taxpayer's financial condition.

All this together results in Offers in Compromise becoming a very impractical way of attempting to address IRS collections situations for most people. Consider for a moment; if you want to make an Offer to settle your IRS debt for $10,000, it means you have to submit $2,000 with the application, and the odds are 3 out 4 that the IRS is going to come up with an unrealistically high number for what you could afford to pay them and thus reject your application and keep the money anyway, after which time they’ll continue trying to collect the remaining unpaid debt. This is not a happy situation and discouraged a lot of people from even trying to make Offers.

Part of this most recent IRS announcement was the fact that they were going to now be evaluating Offers using property values which had some relation to reality and would even be willing to go back and reopen Offers which were previously rejected based on unrealistic valuations for real estate. The troops in the field have also been instructed to allow some time for taxpayers to get themselves back together financially in the event of a change in their fortunes; and to allow taxpayers to miss a payment or two (or maybe even more) on a payment plan as long as they work closely with the IRS regarding the missed payments. Other concessions to economic reality were also made.

All in all, this is a good thing and means that it should be much more realistic for people to be able to settle or at least address their unpaid tax liabilities with the IRS without having to spend enormous amounts of money on representation fees. This is good news for the average American and probably even good news for the overall economy.

William D. Truax - About Author:
William D. Truax, E.A., a tax practitioner & financial consultant for over thirty years, is founder of William D. Truax, E.A. Tax Advisors (http://www.truax.net), in Glendale , CA --experts at tax prep, planning & representation. For a full bio & services offered see http://www.truax.net/?page_id=9

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/truax-net-a-glimmer-of-hope.htm

Related Finance Articles Subscribe to RSS

Make business simplified with Bookkeeping Services
Published by Nelson on April 25th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Unsecured business loans are funds with fast approval
Published by Macrobusinesscapital@gmail.com on February 3rd 2012 | Finance
There may be several reasons for someone to look for additional or basic finance for his or her firm...
 
Bookkeeping performs an extremely important role in every business
Published by Nelson on February 29th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Advanced atm equipment help to increase business revenue
Published by Anthony Mckeown on November 30th 2011 | Finance
It is always a matter of great concern for the business owners to find new and inoative ways to get ...
 
Merchant cash advance is the new kind of business loan
Published by Sadie Rad on April 16th 2012 | Finance
Small businesses are on the rise everywhere and all they need is funding. It is absolutely necessary...
 
Why a business advance has more advantages
Published by Mathias Scott on April 2nd 2012 | Finance
For those people running small businesses in the current economy, they all know the trouble associat...
 
Why a business cash advance has more benefits than small business loans
Published by Joseph Richard on April 4th 2012 | Finance
Every small business knows how difficult it is for one to get a small business loan these days. With...
 
Maintain data of your business with beneficial Bookkeeping
Published by Nelson on March 19th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
What you need to know about business financing?
Published by Matthew Anthony on February 23rd 2012 | Finance
To get finance for your new business can give you a tough time. But business financing Las Vegas fa...
 
Set up new strategies for your business with Bookkeeping
Published by Nelson on March 14th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Getting the most out of your unsecured business loans
Published by Mathias Scott on June 14th 2012 | Finance
An unsecured loan is one that you get without having to put forth a collateral. In this form of lend...
 
Blake cab offer some of the most reliable debt collection agency results of any business of its kind in the UK
Published by Mary Porter on July 12th 2012 | Finance
If you have incurred lost monies then here at Blake debt collection industry we have the experience ...
 
Bookkeeping services...Utilizing tricks for development and growth of business
Published by Nelson on January 27th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Proposed audit legislation: Good for business or political posturing?
Published by Becky on March 14th 2012 | Finance
219 businesses across the UK responded to a recent survey with their thoughts on audits, reporting a...
 
Business loans or business grants what is better?
Published by Macrobusinesscapital@gmail.com on December 10th 2011 | Finance
Pumping up your business with adequate funds is always what you need as an entrepreneur. To get the ...
 
Manage your business records & transactions with Bookkeeping Service
Published by Nelson on January 23rd 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Small business loans for women business owners
Published by Merchant Cash on March 29th 2012 | Finance
Gone are the days when business was thought to be the exclusive domain of men, and women were consid...
 
How to get a small or new business grant
Published by Church Henry on June 16th 2012 | Finance
Special grants are given by the authorities for starting up new and small businesses that most peopl...
 
Get fast business funding within days of applying
Published by Merchant Cash on March 29th 2012 | Finance
As with any business, your organisation is all about your ability to manage your customers and your ...
 
Unsecured business loans your funding option for urgent business funding
Published by Macrobusinesscapital@gmail.com on December 21st 2011 | Finance
There are certainly such times with business people, no matter whatever kind business they are deali...