On January 11, 2012 National Taxpayer Advocate Nina E. Olson released her annual report to Congress, identifying the combination of the IRS’s expanding workload and declining resources as the most serious problem facing taxpayers. The result, the report says, is inadequate taxpayer service, erosion of taxpayer rights, and reduced tax compliance. The Advocate expressed her continuing concern that the IRS’s expanding use of automated processes to adjust tax liabilities is causing harm to taxpayers and recommended that Congress enact a comprehensive Taxpayer Bill of Rights.
Robert E. McKenzie recently contributed to Forbes’ “IRS Watch” section in an article, “Afraid to File Your Return Because You Owe IRS? Here’s How IRS Collects Delinquencies.”
Mr. McKenzie explains that the IRS Collection Division attempts to collect delinquent taxes as inexpensively and rapidly as possible using automated methods. He then outlines the IRS’s four-level system of collection, the Regional Compliance Centers which process the filed tax returns, the IRS procedure for business taxpayers’, small dollar payment plans, among other key information. Mr. McKenzie’s recommendation is to be proactive when you owe the IRS: “Not filing your return on time (or with an extension) will cause even greater penalties.”
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