Cuts in the IRS budget from $14 billion in 2010 to approximately $12 billion in 2017 have resulted in staff reductions by about one-third during that time frame.  IRS staffing dropped to less than 10,000 agents for the first time since 1953. As a result of the cuts, audit rates have dropped for all income […]

Tax Fraud Blotter Fair Oaks, Calif.: Tax lawyer Hiram M. Martin, 71, who represented retired professional football player Antrel Rolle, has been sentenced to three years in prison today for fraudulently obtaining refunds for Rolle, stealing the refunds and then covering up his scheme by filing false documents with the Internal Revenue Service. Martin, who […]

The IRS Is Now Using Private Debt Collectors. After years of warning taxpayers that the IRS will never cold call you to collect a tax debt, things are about to change as the IRS begins handing over some of its debt-collection work to private firms who probably will call you. This drastic change in practices for […]

A Summary of the IRS Fresh Start Initiative Recently, you may have heard a lot about the Fresh Start Initiative in radio ads, tv advertisements, online and more—like it is some recent change the IRS made. In reality, the IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get […]

From Accounting Today As IRS budgets and audit staff continue to diminish, audit numbers are at an all-time low. But when you file your clients’ returns, the most common question persists: “How likely am I to be audited?” Taxpayers whose returns stray far away from the norm or have “large, unusual or questionable items” can […]

How one man used the ‘innocent spouse’ rule to win some relief in Tax Court From the Wall Street Journal Rick Jacobsen’s wife embezzled nearly $500,000. After her conviction, the Internal Revenue Service asked him to pay more than $100,000 of taxes due on her theft. Yes, embezzled funds are taxable, and Mr. Jacobsen and […]

 “Settle Your Back Taxes for a Fraction of What You Owe – Tax Evaluation Waiting! Stop IRS Collections Now.” –Google search ad results, September 2018 What’s true is that the IRS has a program that allows taxpayers to settle their tax debts for less than the amount they owe. The formal name for this tax […]

Warwick, R.I.: Preparer Raymond Petrarca has pleaded guilty to 44 counts of filing fraudulent returns for clients. According to documents and information provided to the court, Petrarca owned and operated the tax prep business Stratus Financial Group. He admitted to falsifying 44 returns prepared for clients between tax years 2010 and 2015, seeking undeserved federal refunds. […]

The IRS Collection Process: A Review of the Basics Procedure & Administration The IRS is the largest collection agency in the country and by far the strongest, empowered by Congress to take actions necessary to collect taxes owed to the federal government. Such a wide-ranging power can easily create some fear among those who do […]

Every September through November the IRS begins to send out federal tax liens and levies to anyone who may owe a balance to Uncle Sam. Receiving a notification from the IRS stops everyone in his or her tracks. Chances are it could be a simple situation that can be remedied quite quickly. While it is […]