Due Diligence

by Brian H. Mahany

A just released report shows the IRS collected $400,000,000,000 less in 2009 than in 2008. (Yes, that is 400 billion.) No surprise there - the economy remains in a slump and placing food on the table occupies a higher importance than paying taxes for many families.

The same report, released by the Treasury Inspector General for Tax Administration, also revealed that the government ramped up collection efforts and enforced collection procedures last year. Again, no surprises.

Looking at federal budget documents, the IRS hired an additional 2000 revenue agents last year. Couple that with hundreds of new revenue officers and criminal special agents and its easy to see the handwriting on the wall. Increased audits, more sophisticated revenue discovery techniques and more enforced collections are on the horizon this year.

Taxpayers can continue to expect more scrutiny. Those with unpaid taxes can really expect to see more “heat,” including an increased risk of criminal prosecution.

The increase in tax enforcement has lead to an increase of late night infomercials promising to settle tax debts for “pennies on the dollar.” Be careful!  As I write this blog, I just now checked the Better Business Bureau for a rating on industry leader, JK Harris.  Their rating? An F.

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Mahany & Ertl, LLC helps people and business with a wide range of tax problems. Partner Brian Mahany has been a lawyer for over 25 years, several of those as an assistant attorney general handling tax cases and as head of a large state revenue agency. Partner Christopher Ertl has been practicing tax and criminal tax law for a decade.

Mahany & Ertl can represent you at any point in an audit, collection action, tax court  litigation or criminal investigation. From tax liens to tax evasion charges, we can help.  Call Brian Mahany directly at 414-704-6731 or email at brian@mahanyertl.com for a confidential consultation. If you are under investigation, do not delay - time is not in your favor.