Budget Cuts Prevent The I.R.S. From Collection Of Taxes

Budget Cuts Make the I.R.S. Less Efficient, Report Claims

Reduced funding and an expanding mandate have left the Internal Revenue Service incapable of performing its primary duty of tax collection efficiently. This is according to a report released by the agency’s Internal Monitor on Wednesday.

The backlog of cases and job cuts has made the agency less capable of collecting hundreds of billions of dollars in taxes every year. This is what the national taxpayer advocate, Nina E. Olson claims in her annual report to Congress.

The agency is now using computer software to ask taxpayers to file their returns … Read more at 2011 Tax.

What’s New For 2012 Taxes

We have made it to our next tax season! While your taxes are not due for several weeks still, this is the month that you will be receiving the documents you need to turn in: all of your W-2s, any 1099s you may have received for investments, and so on. If you do not have a system in place to take care of your 2011 tax filing, now is the time.

Thanks to April 15 being on a weekend this year, taxes are not due until April 17 this year. If you cannot get your taxes filed by that … Read more at 2011 Tax.

Should I File A Tax Return This Year?

The law requires you to complete a tax return when you have income above a designated amount. The amount varies according to your age, filing status and income type. However, even if you are not required to file, you might benefit as you could get a refund if taxes were withheld or you qualify of certain refundable credits.

The IRS website is a helpful resource to see if you should file. The Interactive Tax Assistant on the site can lead you through a several questions to see if you should file. Other information is found on printed tax forms.

Six … Read more at 2011 Tax.

Tax debt reduction: Offers in Compromise explained

There are many different types of debts that people are struggling with these days and for some people it is their tax debt that is causing them a huge problem. Whilst the Internet Revenue Service does, of course, expect people to pay the taxes that they owe, but in some cases an exception may be made and the tax debt may be reduced through the use of an Offer in Compromise.

If the IRS has reason to believe that there is little to no chance of being able to receive the total amount of the tax debt that you owe, … Read more at 2011 Tax.

Monitoring your Federal Tax Refunds via your iphone.

Amazingly the IRS has embraced modernity (in one area at least) and it is possible to now check your tax status via your iphone, android phone or tablet device. An organization which seems to creak under its own antiquated history and seems to patch up its rules and regulations every year rather than innovating and moving forward has actually brought out something worth getting hold of!

The IRS2Go app was released earlier in the year for the purposes of allowing people to quickly and easily check the status of their tax refund. All the app does is simply access the … Read more at 2011 Tax.

Tax debt: Ways in which you can pay off IRS debt

If you think that you are having problems with tax debt, there are various ways in which you can pay off your tax dues. If you are having financial problems in general, you can include your tax debt in your debt consolidation. You can consolidate debt in order to pay off all of your unsecured debts. However, there are some other tax debt pay off options too.

Tax debt pay off options

The Internal Revenue System or the IRS offers you various payment options that can help you to pay off your IRS taxes easily enough. The different pay … Read more at 2011 Tax.