Working with the IRS has never been easy, and tax settlement agreements are always complicated affairs. If you are currently working to pay off your tax debt, you may wonder what the recently passed ‘Inflation Reduction Act of 2022’ has in store for you.
There has been a lot of back and forth about the Inflation Reduction Act and what it means to you. Here are a few details about how this act could impact you and some essential things to consider moving forward.
The “Army” of IRS Agents Are Not All Soldiers
A lot has been said of the supposed army of IRS agents who will soon be walking through the streets of America. There are some pundits and politicians who say, “the IRS will be hiring 87,000 armed agents to hunt down innocent taxpayers, relieving them of their hard-earned money in escalating waves of harassment.”
The reality behind the army of IRS agents is much different and far less troubling than what you may be hearing. Most of the new hires will be administrative personnel, IT workers bent on upgrading old hardware, customer service representatives to answer the endlessly ringing phones, and so on. That does not mean there will not be new agents on the job, but the scope of the new hires is not a reason to panic, even if you currently owe money to the IRS.
Enforcement Efforts Will Ramp Up
Even though only a portion of those new IRS hires will be “on-the-ground agents,” the overall goal of this bill for the IRS is to increase the amount of revenue they are collecting from taxpayers. There is reason to believe that the IRS will be more aggressive with its collection efforts because of the Inflation Reduction Act.
The nature of this bill has raised concerns that the IRS will have an increase in audits for small business owners and regular taxpaying citizens across the country. Our government claims the IRS’s efforts are geared more toward citizens in higher tax brackets; however, only time will tell if they do not target the “everyday” taxpayer. If you think you owe money to the IRS, this is the time to take it seriously to avoid any additional penalties and interest or, worst-case scenario, the IRS freezing any of your bank accounts and garnishing your wages.
Professional Tax Relief Guidance is More Important Than Ever
The IRS has been increasing its efforts against taxpayers even before passing the Inflation Reduction Act of 2022. Hopefully, you are working with a professional as you work with the IRS since the settlement process can get pretty complicated and working with a tax relief specialist ensures you can get the lowest settlement possible for your specific situation under the law. Ignoring the situation will only worsen it, as the longer you wait, the more expensive your situation will become.
So, do yourself and your wallet a favor by connecting with a tax resolution specialist like East Coast Tax Consulting Group. We specialize in helping people get their IRS tax problems settled and behind them once and for all!