NORTH CHARLESTON, SC, January 11, 2009
/24-7PressRelease/ -- JK Harris and Company President and Founder John Harris agrees with recommendations recently released in the National Taxpayer Advocate 2008 Annual Report to Congress, as well as changes the IRS itself is making to help financially strained taxpayers.
In her report to Congress, NTA Nina E. Olson calls for simplifying the tax code and using compassion with taxpayers who have been hit by the recent economy. And just a few days after the report was issued, the IRS kicked off the 2009 tax filing season by announcing how it is going to help financially distressed taxpayers.
"In these difficult economic times, many taxpayers are facing financial hardship," said Harris, founder of the nation's largest tax representation firm. " I commend Nina Olson for asking for simplification and compassion for them. I also believe the IRS is doing the right thing by providing different options for taxpayers in financial hardship."
Olson's office compiled data that showed U.S. taxpayers and businesses spend approximately 7.6 billion hours a year just complying with tax-filing requirements. Some of Olson's recommendations for simplifying the tax code include withdrawing the Alternative Minimum Tax, streamlining the education and retirement savings tax incentives, simplifying the family status provisions, and revising the overall penalty structure.
"If tax compliance were an industry, it would be one of the largest in the United States," the report to Congress said.
Olson's suggestions for helping taxpayers in financial trouble are as follows:
- Make greater use of collection alternatives such as Offers in Compromise and Partial-Payment Installment Agreements when economic hardship is present.
- Simplify the "cancellation of debt" process for taxpayers who default on credit card balances, mortgages, car loans, student loans, etc.
- Put a "screen" in place to protect low-income Social Security recipients from automated tax levies.
"I truly believe if all or even some of Ms. Olson's suggestions are implemented by the IRS, it would greatly help the taxpayer and the IRS alike," Harris said. "As for the IRS itself, the agency appears to be making strides in helping taxpayers in need, as well."
The IRS is working to help struggling taxpayers in the following areas:
- Postponement of collection actions, added flexibility for missed payments, additional review for Offers in Compromise on home values, prevention of Offer in Compromise defaults, and expedited levy releases.
- New credits such as First-time Homebuyers Credit, Recovery Rebate Credit, Standard Deduction for Real Estate Taxes, and Mortgage Workouts and Foreclosures.
For more information about the Taxpayer Advocate Service, visit http://www.irs.gov/advocate/, and for additional information on the 2009 tax filing season, visit http://www.irs.gov.
About JK Harris:
JK Harris & Company, LLC, (www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax representation firm and has served over 225,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 325 locations nationwide by appointment only. The company also provides services for student loan debt, fee-based financial planning, tax return preparation, and audit representation.
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