Internal Revenue Service

Dealing With The IRS Part 2

Dealing with the IRS may be one of the most intimidating thoughts or notions for any American taxpayer. Everyone wants to know how to deal with the IRS when the time comes. Here are some tips if a taxpayer receives a notice from the IRS, thus necessitating some contact with the IRS.

The IRS typically sends a notice or a letter for a variety of reasons, including information about some specific issue related to a federal tax return or account, or information about changes to such an account. A notice may also request further information about some tax-related issue or request a payment.

Dealing With The IRS Part 1

Dealing with the IRS may be one of the most intimidating thoughts or notions for any American taxpayer. Everyone wants to know how to deal with the IRS when such unmentionable time arrives. Here are some tips for two common situations in which taxpayers may have to deal with the IRS. The first is the situation when a taxpayer simply has an inability to file a return and pay taxes; the second situation is the occurrence of an extensive delay in receiving an anticipated tax refund. Both may necessitate IRS contact. A qualified tax professional may offer the necessary guidance and assistance in these and many other tax-related scenarios.

The IRS Releases 2017 Inflation Adjustments

Now that we’re well into the New Year, taxpayers should know 2017’s inflation adjustments for several tax provisions set forth in Rev. Proc. 2016-55. These adjustments apply to tax years beginning in 2017 and transactions or events occurring during the 2017 calendar year. Many affect estate planners and expatriates.

*The 2017 taxable income thresholds on trusts and estates under § 1(e) are:

If Taxable Income is: The Tax is:
Not over $  2,550 15% of the taxable income
Over      $  2,550 but not over $ 6,000 $   382.50  plus 25% of excess over    $ 2,550

Tax Professionals Provide Input For IRS Future State

At the end of 2016, as part of a concerted, continuous effort to gather feedback from the tax community and partner groups, the Internal Revenue Service announced that tax professionals attending the Nationwide Tax Forums provided valuable guidance to Future State efforts to improve taxpayer service by highlighting a number of areas of concern.

The 2016 tax forums held by the IRS in five cities held during July, August and September were attended by more than 10,700 tax professionals. IRS Tax Forums are three-day events that are intended to provide tax professionals with the most current information on federal and state tax issues. This information is presented by experts from the IRS and partner organizations through training seminars and workshops.

Public Awareness: “Taxes. Security. Together” Campaign

The Internal Revenue Service, the states, and the tax industry are working together in an unprecedented partnership to protect taxpayers’ federal and state tax accounts from identity thieves. The “Taxes. Security. Together” awareness campaign is an effort to better inform taxpayers about the need to protect personal, tax and financial data home and online.

The IRS, state tax agencies, and the tax industry also hosted a National Tax Security Awareness Week Dec. 5 to Dec. 8, 2016. In addition, it launched a Protect your Clients; Protect Yourself campaign to raise awareness among tax professionals that they too are increasingly the targets of criminals.

New IRS Statistics Show A Concentration Of U.S. Income Among Only A Few

The U.S. has a progressive income tax system. Therefore, the rate of tax increases as taxable income increases. The purpose of imposing progressive taxes is to reduce the tax incidence of people with a lower ability to pay taxes, as these taxes shift increasingly to those with a higher ability-to-pay. Thus, the bulk of tax revenue is in high-income households.

Statistics just released by the IRS show that the top 1% of households received more than 20% of adjusted gross income in 2014 while paying almost 40% of income taxes. Less than 4% of income tax is paid by the bottom 50% of households. Federal tax rates in 2015 varied from 10% to 39.6%.

IRS To Use Private Debts Collectors

In the spring of 2017, the IRS will begin outsourcing the collection of not all, but some, overdue federal tax debts to private contractors. In early December of 2015, President Obama signed into law the Fixing America’s Surface Transportation Act, or “FAST Act.” The FAST Act provides funding for transportation project over the next ten years. Of course, any bill related to highways is likely to include provisions requiring the IRS to use private debt collection companies, which this bill, in fact, includes.

IRS Agents – Who Are These People?

For individuals with delinquent tax debt, thoughts of IRS contact may haunt their daily thoughts. IRS operatives may be lurking, waiting, ready to move in and assert their authority. At least this has often been the public perception, albeit somewhat exaggerated. However, this may be more likely of an occurrence in 2016 as IRS representatives seem to be regularly “visiting” taxpayers at their homes and places of employment! The tax professionals at the Thorgood Law Firm can assist any taxpayer that receives an unexpected visit from IRS personnel. Just who are these representatives and agents of the IRS?

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