by Ex-IRS Revenue Officer

  & IRS Group Manager

 

Tax Debt Relief

There is no question that we are experiencing one of the worst recessions since the Great Depression.  Our Federal deficits are at record levels; the IRS has accelerated their efforts to collect back taxes with a renewed vigor. 

This means Federal Tax Liens are being filed at an accelerated level. Whether this IRS policy approach becomes permanent is not known at this time.

IRS tax Lien can badly damage a taxpayer’s financial viability because lien filings appear on credit reports, causing the taxpayer’s credit score to drop an average of about 100 points immediately and causing lasting harm because they typically remain on the taxpayer’s credit record for at least seven years.

Many employers, mortgage companies, landlords, car dealerships, and credit card issuers check credit reports, so the filing of a IRS tax lien can adversely affect the taxpayer’s ability to obtain and retain a job, purchase a home, rent an apartment, or obtain credit generally. Accordingly, a lien filing may reduce the taxpayer’s income or increase his expenses, thereby impairing his ability to pay tax in the future. Last year, the IRS filed nearly one million liens against taxpayers.

For more information on IRS collection practices and tax liens, refer to the report described below ("National Taxpayer Advocate Mid-Year Report to Congress").

There are people who owe back taxes to the IRS and are successful at going it alone. But is it is the wisest choice?

Would it be better for a person who needs IRS tax debt relief to consult with an IRS Tax Professional (Enrolled Agent) when dealing with the IRS?

The average taxpayer wants to know if he/she is dealing with a professional versed in tax laws and the IRS programs that can reduce the amount he/she owes the IRS. IRS Representation is a very complex endeavor with many different administrative procedures and laws to interpret.

Any Attorney or CPA can represent clients before the IRS, but only an Enrolled Agent is Federally Licensed with only one specialty, Federal Taxes with knowledge and experience needed to successfully represent you before the IRS is truly qualified to provide the Tax Resolution Advice you need.

A trained Tax Resolution Advice Professional with a solid IRS background can help his client minimize the amount of tax and penalties which they owe and help get them back on their feet financially. How you choose the person who will represent you before the IRS is very important.

Enrolled Agent (E.A.) members are required to take Continuing Professional Education classes each year to maintain their membership. Members also receive regular information on the latest techniques and strategies about Tax Resolution Advice to their clients when dealing with the IRS.

When you see the Enrolled Agent membership certificate in a professional's office, you can have confidence knowing that you're dealing with a trained tax professional, who is expert in providing the best Tax Resolution Advice and Income Tax help.

Vic Morel, Enrolled Agent (E.A.), was employed by the Internal Revenue Service (IRS) in both management and field positions for 34 years. He holds both a BA and MS degrees.

In addition to practice before the IRS as an enrolled agent, He worked as IRS Appeals Settlement Officer which makes him highly qualified to handle IRS tax debt relief cases.

Prior to working in IRS Appeals, for a number of years, he worked as IRS Collection Manager therefore he has intimate knowledge of rules and regulations IRS must follow.

His wealth of knowledge and experience can help you solve your toughest IRS Tax Problems.

This report expresses continuing concern that IRS tax collection practices emphasize collection of past-due liabilities, even where doing so inflicts unnecessary or disproportionate harm on taxpayers and jeopardizes future tax collection. “The conventional wisdom seems to be that more hard-core enforcement actions like liens and levies mean more revenue,” Ms. Olson said. “But the data don’t bear that out.

Since FY 1999, the IRS has increased lien filings by about 475 percent and levies by about 600 percent, yet inflation-adjusted revenue raised by the IRS Collection function has actually declined by about seven percent over that period.”

The report also notes that the IRS has issued at least four public statements over the past year-and-a-half pledging to assist financially struggling taxpayers who are having difficulty paying their tax bills. Yet the number of liens and levies has continued to rise, the number of offers-in-compromise the IRS is accepting is near an all-time low, and there is little evidence that IRS is changing its collection practices.

The National Taxpayer Advocate is required by statute to submit two annual reports to the House Committee on Ways and Means and the Senate Committee on Finance. The statute requires these reports to be submitted directly to the Committees without any prior review or comment from the Commissioner of Internal Revenue, the Secretary of the Treasury, the IRS Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget.

The first report is submitted mid-year and must identify the objectives of the Office of the Taxpayer Advocate for the fiscal year beginning in that calendar year. The second report, due on December 31 of each year, must identify at least 20 of the most serious problems encountered by taxpayers, discuss the ten tax issues most frequently litigated in the courts, and make administrative and legislative recommendations to resolve taxpayer problems.

National Taxpayer Advocate Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year (7/7/10) IRS Collection Practices.