The IRS is Back with a Vengeance

The emphasis at the Internal Revenue Service is now on enforcement. The kinder, gentler IRS of a few years ago is gone.

Sterling, VA (PRWEB) August 4, 2005 -- The days of a kinder, gentler, Internal Revenue Service are gone, according to Thomas C. Butler, EA, of the Butler Consulting Group, Inc. of Sterling, VA. Butler attended the National Tax Practice Institute this week in Washington, DC. The Institute is the nations premier program designed to equip tax professionals for client representation before the IRS.

The message from the conference was clear," Butler said. The IRS emphasis is on enforcement, and their new technology does a better job identifying potential audit targets. IRS issued over 2 million tax levies in 2004 alone, compared to just 220,000 in 2000. That is staggering growth which shows no sign of slowing down. Furthermore, we are now seeing more criminal sanctions-prison time-in addition to fines."

The IRS found that the biggest potential for additional taxes and penalties comes from the self-employed and small business owners, along with higher income individuals. According to Butler, these groups must be particularly diligent about keeping good tax records and fully complying with the law.

Most importantly, according to Butler, taxpayers who receive correspondence from the IRS should not ignore it. At any moment, there are thousands of notices from the IRS in the mail. As bad as it is to see an IRS envelope in your mailbox, it is much worse to receive a second, or a third, or a fourth. By then, it may be too late to protect many of your rights," Butler said. Furthermore, dont expect to settle your tax debt for pennies on the dollar, as some unscrupulous firms advertise. Those who claim they can do so dont tell you that those kinds of settlements occur just a tiny fraction of the time."

Butler suggests working with Enrolled Agents and other tax professionals not only when problems arise, but beforehand as well. EAs are the only tax professionals who are licensed directly by the IRS. They are uniquely qualified to help clients resolve tax problems and are a great resource for people who want to make sure they are in compliance with tax law before it is too late. EAs cant make you audit-proof, but since they specialize in taxation, they can identify your potential problems and how to solve them."

The Butler Consulting Group specializes in taxpayer representation, tax preparation, and small business accounting. The company is located in Sterling, Virginia, and may be reached at (703) 404-8727.

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