CPA Tom Wheelwright Raises Concerns over 2 Hidden Tax Provisions in New Transportation Act

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With both houses of Congress passing the FAST Act (“Fixing America’s Surface Roads”) on December 3, 2015, CPA and CEO Tom Wheelwright raises concerns over two hidden tax provisions that will cause upheaval to many taxpayers.

Tom Wheelwright, CPA and CEO Provision

“What’s not in the FAST Act bill’s name are the changes to tax enforcement that will cause upheaval to many taxpayers." ~ Tom Wheelwright, CPA and CEO of ProVision Wealth

Tax-Free Wealth Author Tom Wheelwright points out that the name of the just passed (“Fixing American’s Surface Transportation” FAST Act) is misleading because it implies fixing roads and hides two important tax provisions. Most people are unaware that this new transportation act (passed December 3, 2015) allows the government to hold passports for taxpayers who owe $50,000 or more in back taxes (Forbes 12/4/15) and requires the IRS to use outside collection agencies (ACA International 12/7/15).

Wheelwright expands, “On the surface, this seems ok. The problem is that most taxpayers who owe $50,000 or more in back taxes do so because they have either 1) received bad tax advice or 2) fallen on tough times. And it doesn’t matter if the taxpayer is trying to fix things. It takes months to get a tax issue straightened out with the IRS. With all of the cuts to the IRS budget, only 40% of calls to the IRS are even answered. So someone who owes back taxes cannot easily get with the IRS to resolve their back taxes. And while the IRS is not responding to them, the State Department can take away their passport.”

Regarding the misleading name, Wheelwright adds, “What’s not in the bill’s name are the changes to tax enforcement that will cause upheaval to many taxpayers. Ever wonder why so many of the Republican presidential candidates are calling for the abolishment of the IRS? Why the taxpaying public hates the IRS? The enforcement provisions in this bill are one of the many reasons.”

As a CPA and CEO of ProVision Wealth, Wheelwright adds; “Income tax in the U.S. is a voluntary system. While nobody completely believes this, most taxpayers are willing to pay their fair share of taxes. They pay them on time and, to the best of their ability, in the right amount. In fact, the U.S. has the highest rate of taxpaying compliance of any country in the world.”

For the FAST Act, Wheelwright raises the question, “Why does Congress and the Administration believe that the IRS should be given an even bigger hammer than they already have?” The bill allows the State Department (who administers passports) to pull the taxpayer’s ability to travel outside the U.S., unless they are already under an installment agreement to pay back taxes.

In addition to holding passports for back taxes, the IRS is now DIRECTED, not merely encouraged or allowed, to use outside collection agencies to collect back taxes. Wheelwright adds, “Anyone who thinks the IRS collection agents are bad will be in for a rude awakening when an outside collection agency comes knocking on their door. These collection agencies only get paid if they collect. So the agencies will not be shy about pestering taxpayers for collection.”

And Wheelwright is not alone in raising these concerns over misleading bills and hidden provisions. Nina Olson, National Taxpayer Advocate, has expressed concern for years, noting that these programs raise significant concerns over taxpayer rights, and have repeatedly fallen far short of revenue-raising expectations. Wheelwright adds, “This provision is nothing less than a way for the IRS to increase its’ budget by pushing off one of its primary duties to private companies.”

Media Contact
Liz Kelly, Goody PR, 310-987-7207

Tom Wheelwright, Author of Tax-Free Wealth, CPA and CEO of ProVision Wealth (Tempe, Arizona), is a leading tax and wealth expert, speaker, and a Rich Dad Advisor/Speaker for Robert Kiyosaki, who wrote Rich Dad Poor Dad. He is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. He is the Founder of WealthStrategyU, and has been featured in Accounting Today, Investors Business Daily, Deseret News National, Go Banking Rates, and as a guest on the ABC Radio News, AM870 The Answer, Real Estate Guys Radio Show, Money Radio 1510 Business for Breakfast, AZTV Morning Scramble and more.

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