SOURCE: Fresh Start Tax, LLC

Fresh Start Tax, LLC

August 26, 2010 05:30 ET

Fresh Start Tax: IRS Collection Practices Get Slammed by NTAO

FORT LAUDERDALE, FL--(Marketwire - August 26, 2010) - Two of the country's leading IRS experts, Michael Sullivan and Steve Jacob, found that the IRS is hammering delinquent taxpayers on back tax issues even after recommendations from the National Taxpayer Advocates Office. Per Nina Olson, Chair of the NTAO, "The IRS inflicts unnecessary or disproportionate harm on taxpayers and jeopardizes future tax collection. Since FY 1999, the IRS increased lien filings by about 475% and levies by about 600%, yet inflation-adjusted revenue raised by IRS Collections has actually declined about 7% over that period."

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. The number of liens and levies continues to rise, the number of offers-in-compromise the IRS is accepting is near an all-time low, and there is little evidence that the IRS is changing its collection practices said Nina Olson.

Lien filings can badly damage a taxpayer's financial viability because they appear on credit reports, causing the taxpayer's credit score to drop an average of about 100 points, 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 tax lien can adversely affect the taxpayer's ability to obtain and retain a job, purchase a home, rent an apartment, or get credit. 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.

The Fresh Start Tax team of experts believes that enforcement action can be avoided. Fresh Start Tax is a leader in the tax resolution industry, comprised of tax attorneys, CPAs, former IRS agents and instructors. Our staff has worked thousands of cases over the last 25 years. If you are in need of Immediate Representation for an Offer in Compromise or any other tax issue, call us today.

Additional Resources:

Fresh Start Tax Blog: http://www.freshstarttax.com/blog/

Fresh Start Tax Twitter: http://twitter.com/fresh_start_tax

Fresh Start Tax YouTube: http://www.youtube.com/user/freshstarttax

About Fresh Start Tax, LLC
 
A tax resolution company specializing in IRS problems such as; tax liens/levies, wage garnishment, unfiled/back taxes and other IRS tax help. Visit, http://www.freshstarttax.com

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