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IRS Going into Warp Drive

As 2012 approaches, Accountant Miami are sounding the alarm: The IRS will squeeze every cent it can and “it will be nastier than ever.” The Obama administration and U.S. lawmakers know that current economic conditions will probably result in less revenue collected from taxpayers, especially with high unemployment and more than 50 percent of the population not paying income tax” states Viera a CPA in Miami.

Accountant Miami noted that even the Internal Revenue Service’s top leader — Treasury Secretary Timothy Geithner — is quoted as saying that the IRS will be more aggressive in collecting back taxes and prosecuting Americans accused of tax evasion.

The Internal Revenue Service claims that billions of dollars in income tax assessments were not paid  by Americans. If not collected, annual unpaid taxes keep accumulating each year along with penalty and interest charges to create an inventory of “tax debts,” which approached $300 billion at the end of the fiscal year estimated Accountant Miami Viera.

IRS has a complex process to collect unpaid tax debts by contacting taxpayers through notices, telephone calls, and in person says Viera a CPA in Miami. Because IRS has a very large debt workload and limited resources spread across multiple units, it must make numerous decisions about how best to handle debt cases. The complexity also arises because debt cases can take various routes based on about 70 IRS decision rules used for handling cases as most Accountant Miami firms are aware of.

“A total of $332 million would be devoted to new Internal Revenue Service (IRS) enforcement efforts, including $128.1 million to add nearly 800 new IRS employees to combat… tax evasion and improve compliance with tax laws by businesses and high-income individuals,” said CPA in Miami Viera himself per IRS press releases.

“Those of us who fight the IRS every day know this is true. The US Treasury is desperate for cash and the IRS has been told to get tougher in collecting old debts,” says Viera an Accountant Miami.

The IRS has hired many new and forceful Revenue Officers who will come to people’s homes, businesses or even to a Rotary Club meeting to find suspected delinquent tax payers. “These Revenue Officers tend to be overly aggressive because they think that this will impress their superiors and get them promoted,” cautions most CPA in Miami.

For the first time, taxpayers’ primary residences are up for grabs by the IRS. “The IRS is now willing to seize a taxpayer’s primary residence if they feel there is enough equity to satisfy the tax obligation. They can be convinced to back off if you offer a reasonable collection alternative. It’s not easy, but it’s possible,” says Accountant Miami Viera.

In the past, the IRS would not seize retirement accounts, but that too has changed. “The IRS is getting bolder,” says CPA in Miami Viera. “They can and will wipe out a taxpayer’s entire retirement savings if they feel they can collect enough money. There are legitimate ways to prevent this, but you need to know what you’re doing.”

The moral is anyone owing money to the IRS needs to be proactive and not wait for the IRS to come to them. Finding the right Accountant Miami to assist you is imperative.

As CPA in Miami we’ve had clients who came to us after the IRS has pursued them. That makes helping them a lot harder. If someone comes to us early in the game, we have more options. Don’t ignore the IRS. They have to send you a certified letter before they levy or seize your property, but people refuse to pick up those letters. And when the IRS takes aggressive action against them — like wiping out a bank account or levying wages — they were surprised. You do not want to be surprised by the IRS? It won’t be pleasant and the longer you wait, the more shocking it will be.

About 

Gustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO – Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.

About the Author

Gustavo VieraGustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO - Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.View all posts by Gustavo Viera →

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