call us toll free:

888-8TAXAID
(888-882-9243)
Monday - Friday from 9:00 am to 5:00 pm

IRS Wrights Off 5X More Than it Collects?

We previously posted, IRS To Realign Compliance Operations where we discussed Starting Oct. 20, the IRS is realigning its tax compliance organizations serving individual and small business taxpayers. This may be a result of the fact that IRS Collection Action Can Be Delayed For A Long Time - Forbes forbes.com
 


If you want to contemplate a real IRS scandal, you might take a look at a recent TIGTA report .  The report indicated that in fiscal 2013, the IRS wrote off $16.1 billion in tax debts, which is five times as much as field agents collected.
  • The overwhelming bulk of tax collections are from compliant taxpayers just paying.  
  • There are also automated collections.  
  • Field collections is more of a backstop.  
  • Still you would think that they would collect more than they write off.
The steps that TIGTA recommended to address the situation strike me as rearranging the deck chairs on the Titanic.  They mainly concern figuring out how to better pick the cases to pursue.
With a significant growth in delinquent accounts and a reduction in the number of employees,  it is essential that the field inventory selection process identifies the cases that have the highest risk and potential for collection. This requires IRS officials to make decisions about how to ensure that the cases in the queue with the best collection potential are identified, selected, and assigned to be worked.
 Have an IRS Levy Problem?

 

Contact the Tax Lawyers at
Marini & Associates, P.A.
 for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243).

Read more at: Tax Times blog

Comments are closed.