So many taxpayers are trying to make deals with the Internal Revenue Service to settle tax bills that the IRS is facing inventory backlogs and processing delays, leaving taxpayers unsure if or when their tax liabilities will be resolved.
In honor of our federal government’s “Tax Month,” I thought you might enjoy more proof that nothing is as certain as taxes even if you have to wait in a long line in order to pay!
Have you heard or seen the radio or television ads promising to help you get the IRS off your back for myriad tax troubles? It seems these ads work so well it has actually created a growing logjam of such cases at the IRS.
Recently, Forbes reported on this problem in an article titled "Trying To Come Clean With The IRS? Get In Line." As reported in the article the number of “offers in compromise” has jumped 28% from fiscal year 2007 to fiscal year 2011. In real numbers, that represents 46,270 offers in 2007 and 59,411 offers in 2011. Here’s the rub: The number of IRS staff members handling the filings has decreased over the same period.
So, if you have filed an offer in compromise, but it has not been processed, don’t despair. The IRS is well-aware of the problem. If you have a “promised date” (when the IRS was to get back to you), then likely the IRS will give itself more time with an extension. Should the logjam continue, expect to get an “interim” letter.
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Reference: Forbes (April 12, 2012) "Trying To Come Clean With The IRS? Get In Line"