Commissioner Doug Shulman said in a statement today that the agency would make it easier for taxpayers to seek withdrawal of liens when they pay a tax debt or make arrangements to pay in installments for debts of less than $25,000. The agency also raised the dollar thresholds before liens are typically filed. “We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” Shulman said in the statement. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.” [Bloomberg]
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How Big of a Burden Will the New 1099 Reporting Requirements Be for Small Businesses?
- GoingConcern
- July 20, 2010
This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.
Slipped into the health care reform bill passed in March was a new tax reporting regulation likely to create a huge burden for businesses, something we wrote about recently. Now a government watchdog, the National Taxpayer Advocate, is questioning the rule’s potential unintended consequences for small companies.
Plus, it looks like the regulation won’t raise a heck of a lot of money anyway.
The rule would require anyone with business income to issue 1099 tax forms to all vendors from whom they bought more than $600 worth of goods and services that year.
In her report, Nina Olson, the Taxpayer Advocate, warned that the rule could prove to be an unacceptable added burden for small businesses, which would face a virtual cyclone of new paperwork to comply with the regulation. “The new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance,” she wrote. And the rule could also give an unfair advantage to large suppliers that have the resources to help customers track purchases.
What’s really going on here? The regulation, which would take effect in 2012, seems to be yet another attempt by federal and state government agencies to shore up revenues by cracking down on unpaid tax liabilities–and taking steps that intentionally or unintentionally impact small businesses in particular. For example, a bevy of agencies, plus Congress, are on a regulatory jihad against corporate misclassification of independent contractors. And there are reports that the IRS is especially eyeing small businesses in that crackdown.
Thing is, like that effort, the new 1099 tax reporting regulation isn’t likely to reap a whole lot of money. For example, the nonpartisan Joint Committee on Taxation recently estimated the rule would raise an underwhelming $2 billion annually in added revenue, according to CNNMoney.com.
Will the Taxpayer Advocate’s remarks have any effect? Even before Olson’s report, there were signs that the IRS had started to backtrack. For example, the IRS announced in May that the rule won’t include transactions made through credit and debit cards. As the tax agency addresses all the compliance complexities of the rule, it’s likely to make other changes, as well.
But with government agencies in desperate need of money, the reporting rule isn’t going to disappear completely.
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The IRS Apprentice Video Is Still Better Than Anything Donald Trump Has Ever Done
- Caleb Newquist
- September 6, 2013
Yes, it's campy. Yes, it's poor production quality. Yes, it's the IRS. But you CANNOT […]
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More IRS Resistance, Now with High-Speed Car Chases!
- Caleb Newquist
- March 18, 2010
A man in Oklahoma City fled police after IRS agents that had been staking out his house attempted to pull him over after it was clear he wasn’t showing up for his court date. The tax-hater du jour was due for a court date in Texas and when the IRS Agents realized he wasn’t headed for the LSS, they tried to stop him. The suspect then did what any clear-thinking person would do when pursued by IRS agents: ESCAPE.
An OKC policman saw the speeding Lexus, pursued, and one left turn later and a brief foot race later, the tax scofflaw was brought justice. IRS: 1. A guy that has probably appeared shirtless on Cops: 0.
No word on whether the IRS were the zealous type but we’re assuming they were packing heat. And since this particular ne’er do well had a court date, it’s safe to assume that he had a settle up for more than just his pocket change.
Police: Chase Suspect Fleeing IRS [KOCO]