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Taxation & Estate Planning

: IRS and the Law

IRS Commissioner Douglas Shulman on IRS collections during recession

By howardlevy

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Today IRS Commissoner Douglas Shulman gave an interview on National Public Radio (NPR) about how the IRS will be dealing with hardship cases during these difficult economic times.

Shulman did not addresss what is really holding up IRS collections - an offer in compromise system that accepts only 25% of the offers it receives.  The IRS collection guidelines have long been too rigid, resulting in an increasing number of taxpayers opting for bankruptcy on the IRS.  This almost always results in a lower recovery to the IRS than an offer in compromise.  And how is more bankruptcy good for our economy?

Here’s to Shulman truly being in sync with the hardships that taxpayers are going through and pushing through real changes - more administrative settlements that gives fresh starts and brings in dollars.

My clients are honest and usually have had some bad breaks - business failure, divorce, medical issues - it could happen to anyone.  Opening up the compromise progaram will provide more fresh starts, bring in money to the Treasury and get those with IRS tax problems back to their full abilities, including homeownership.

Full post as published by IRS and the Law on April 13, 2009 (boomark / email).

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