As budgets get tight some residents are opting to not pay taxes.
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The Internal Revenue Service is reporting a growing number
of Americans are either not filing taxes or filing them late.
Tax Practitioner Maurice Rosaler estimates that 12 percent
of households in the Santa Clarita Valley are not in compliance with the IRS.
The nation wide estimate made by the IRS is more than 11
million taxpayers.
According to Rosaler in recent years the IRS has shifted
into full collection mode, increasing its collection efforts.
In order to collect past due balances, the IRS can garnish individual
wages, seize property and levy accounts payable.
“The biggest mistake is that people don’t file,” Rosaler
said. “They don’t file because they can’t
pay.”
Maurice considers this a mistake because the penalty for not
filing is double the penalty for failing to pay.
The IRS gives taxpayers options when it comes to filing,
including setting up a payment plan and negotiating an offer and compromise,
which allow the taxpayer to negotiate and pay a total that is lower then what
is owed.
In 1998 the IRS implemented the Reform and Restructuring Act
which gave taxpayers a bill of rights. This
act insured that all taxpayers have a right to representation.
The procedures of the I.R.S can be overwhelming and Rosaler
says that it may be beneficial to hire use professional help.