Tax Season, IRS Budget Cuts and Tax Resolution

I was on the Big Biz Show last week. We talked this upcoming tax season, IRS budget cuts, and how I train other tax professionals, attorneys and CPA’s through my tax resolution business academy on how to add a lucrative tax resolution aspect to their practice.  Many of my clients are focusing exclusively on tax resolution now!

On the show, I talked about how some folks still believe they can get away without filing for taxes mainly due to the incompetence of the IRS, which is being eroded tremendously because their billion and a half enforcement budget cuts have decimated them. What’s happening is people are getting further behind in filing and paying than years prior, which equals more troubles ahead (and the IRS will catch up to them!). Little does the IRS know (and I shared this fact on the show) that for every dollar spent on enforcement, they would get back seven dollars more in the treasury. Once they adopt that mentality again, as they have in years past, their aggressive enforcement of the tax laws will again rule the day.

“Customer service” and “IRS” have never been terms that go together and it’s getting even worse this tax season. 12 million people will be getting collection notices from the IRS and 7 million of those 12 have unfiled returns of over a year. That number has steadily increased despite the IRS reducing the number of levy’s and liens issued and a reduction in head count - people this year are still far behind with their taxes compared to year’s past. This will be the worst tax filing season we have ever seen, from a customer service standpoint because of the lack of manpower at the IRS and new programs, like the Affordable Care Act that the IRS has been charged with administering. During the interview I was asked if I was afraid of the IRS and I replied with: “Well, I’m not. I’m not really afraid of anybody because if you do the right thing and you believe in your principles then what’s there to be afraid of?” And besides, living in fear is unhealthy!

I want you to do the same this tax season.