Since 2010, Congress has been asking the IRS to do more with less money. This has reduced the IRS’s audit resources by 28 percent, and the audit rate has fallen from 0.9% in 2010 to only 0.5% last year. And, the overall number of audits dropped by almost half over the same period.
Guess what? The IRS could be coming to collect in person
The IRS recently announced that it will be holding additional compliance events throughout this year, sending revenue officers to areas that have been underserved in recent years. The agency has identified those areas and is choosing high-priority taxpayers to visit in person.
Inflation-based tax changes for FY 2020 announced
The IRS has announced inflation adjustments in dozens of areas, some prompted by the Taxpayer First Act of 2019. Taxpayers should use the new amounts when planning for their 2020 taxes. For example, starting in 2020, the penalty for failing to file a return goes up to $330.
Could an offer in compromise with the IRS resolve your tax debt?
If you owe more in tax debt than you can realistically repay, you should talk to a tax attorney about negotiating an offer in compromise (OIC) with the IRS. An OIC allows you to settle your tax debt for less than the full amount. Getting one approved, however, can be something of a challenge.
