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9 FACTS ABOUT TAXES
WHICH THE IRS DOESN’T
WANT YOU TO KNOW
The fact that so many don’t understand how the IRS
operates, works in the agency’s favor. Taxpayers are
more likely to stay compliant or capitulate to IRS
demands when tax issues arise.
The following are 9 facts the IRS would probably prefer
the American public not know.
Via The Fiscal Times
YOUR CHANCES OF BEING AUDITED ARE LOW
In 2014, the IRS audited fewer than 1 percent of individual tax
returns. This year, this number is likely be even lower due to
budget cuts and a greater workload from Obamacare and the rise
of identity theft. Keep in mind, the higher your income, the more
likely you will be audited.
THEY MIGHT HANG UP ON YOU
If you need to speak to an IRS agent, you may be out of luck. This past tax
season, only 37 percent of taxpayers calling the IRS for help reached a live
customer service representative. In fact, about 8.8 million taxpayers were
hung up on, or “courtesy disconnected,” when the
IRS phone system became overwhelmed.
THE IRS IS VERY SLOW WITH PAPERWORK
The Taxpayer Advocate estimates that last year, 50 percent of
taxpayer letters to the IRS were not handled in a timely fashion.
The year 2015 is likely to be worse with an estimated 45 day lag.
YOUR REFUND MAY BE DELAYED
Due to a series of budget cuts, the IRS has had to cut down on
taxpayer service representatives. IRS Commissioner John Koskinen
warns that people who file paper returns could wait a week longer
than usual for their refund due to staffing
shortages.
THE IRS IS VULNERABLE TO SCAMS
Tax-related identity theft has become a widespread problem. During the
2013 filing season, the IRS paid about $5.2 billion in fraudulent tax
refunds. In a different scam, Americans are being tricked out of millions by
scam calls from con-artists impersonating IRS agents
and demanding money.
ABOUT 20% OF TAXES OWED IS NOT COLLECTED
The annual tax gap, the amount of taxes that are owed, but not paid,
is estimated to be about $450 billion out of a total $2 trillion collected.
According to the IRS, it has been able to collect about $65 billion of
those unpaid taxes through enforcement.
THE IRS MAY BE FLEXIBLE ABOUT
PAYMENT TERMS
A potential upside to the IRS’ overworked, underfunded staff is that they may
be more flexible if you owe back taxes. IRS agents are under pressure to
complete cases in a timely manner which can lead to quick resolutions.
Consider requesting an extension, to pay installments,
or to get the amount you owe reduced. Keep in mind there still are specific
eligibility rules for tax debt reduction.
A SIGNIFICANT PORTION OF IRS ACTIONS ARE
AUTOMATED
Potential issues and errors on tax returns are identified by automated
systems which automatically send out notices or bills. In addition, if a
tax debt exceeds a certain threshold, a tax lien may be placed
automatically.
YOU HAVE AN ADVOCATE
If you feel like the IRS is treating you unfairly or you are having
trouble communicating with them, contact the Taxpayer Advocate
Service (TAS). The TAS is an independent organization at the IRS
that assists individuals and small businesses who are having a
difficult time resolving their tax issues with through normal
channels. You can call the toll-free number at 1-877-777-4778 or
go to www.irs.gov/advocate.
To Learn More
Visit:
www.reliancetaxgroup.com
Or Give Us a Call at:
(877) 597-0153
Works Cited: Stone, Amey. “10 Tax Facts the IRS Doesn’t Want You to Know.” The Fiscal Times. The Fiscal Times, 4 February 2015. Web. 23 July
2015. <http://www.thefiscaltimes.com/2015/02/04/10-Tax-Facts-IRS-Doesn-t-Want-You-Know>

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9 Facts about Taxes, which the IRS doesn't Want You to Know

  • 1. 9 FACTS ABOUT TAXES WHICH THE IRS DOESN’T WANT YOU TO KNOW The fact that so many don’t understand how the IRS operates, works in the agency’s favor. Taxpayers are more likely to stay compliant or capitulate to IRS demands when tax issues arise. The following are 9 facts the IRS would probably prefer the American public not know. Via The Fiscal Times
  • 2. YOUR CHANCES OF BEING AUDITED ARE LOW In 2014, the IRS audited fewer than 1 percent of individual tax returns. This year, this number is likely be even lower due to budget cuts and a greater workload from Obamacare and the rise of identity theft. Keep in mind, the higher your income, the more likely you will be audited.
  • 3. THEY MIGHT HANG UP ON YOU If you need to speak to an IRS agent, you may be out of luck. This past tax season, only 37 percent of taxpayers calling the IRS for help reached a live customer service representative. In fact, about 8.8 million taxpayers were hung up on, or “courtesy disconnected,” when the IRS phone system became overwhelmed.
  • 4. THE IRS IS VERY SLOW WITH PAPERWORK The Taxpayer Advocate estimates that last year, 50 percent of taxpayer letters to the IRS were not handled in a timely fashion. The year 2015 is likely to be worse with an estimated 45 day lag.
  • 5. YOUR REFUND MAY BE DELAYED Due to a series of budget cuts, the IRS has had to cut down on taxpayer service representatives. IRS Commissioner John Koskinen warns that people who file paper returns could wait a week longer than usual for their refund due to staffing shortages.
  • 6. THE IRS IS VULNERABLE TO SCAMS Tax-related identity theft has become a widespread problem. During the 2013 filing season, the IRS paid about $5.2 billion in fraudulent tax refunds. In a different scam, Americans are being tricked out of millions by scam calls from con-artists impersonating IRS agents and demanding money.
  • 7. ABOUT 20% OF TAXES OWED IS NOT COLLECTED The annual tax gap, the amount of taxes that are owed, but not paid, is estimated to be about $450 billion out of a total $2 trillion collected. According to the IRS, it has been able to collect about $65 billion of those unpaid taxes through enforcement.
  • 8. THE IRS MAY BE FLEXIBLE ABOUT PAYMENT TERMS A potential upside to the IRS’ overworked, underfunded staff is that they may be more flexible if you owe back taxes. IRS agents are under pressure to complete cases in a timely manner which can lead to quick resolutions. Consider requesting an extension, to pay installments, or to get the amount you owe reduced. Keep in mind there still are specific eligibility rules for tax debt reduction.
  • 9. A SIGNIFICANT PORTION OF IRS ACTIONS ARE AUTOMATED Potential issues and errors on tax returns are identified by automated systems which automatically send out notices or bills. In addition, if a tax debt exceeds a certain threshold, a tax lien may be placed automatically.
  • 10. YOU HAVE AN ADVOCATE If you feel like the IRS is treating you unfairly or you are having trouble communicating with them, contact the Taxpayer Advocate Service (TAS). The TAS is an independent organization at the IRS that assists individuals and small businesses who are having a difficult time resolving their tax issues with through normal channels. You can call the toll-free number at 1-877-777-4778 or go to www.irs.gov/advocate.
  • 11. To Learn More Visit: www.reliancetaxgroup.com Or Give Us a Call at: (877) 597-0153 Works Cited: Stone, Amey. “10 Tax Facts the IRS Doesn’t Want You to Know.” The Fiscal Times. The Fiscal Times, 4 February 2015. Web. 23 July 2015. <http://www.thefiscaltimes.com/2015/02/04/10-Tax-Facts-IRS-Doesn-t-Want-You-Know>