Some Georgia residents and companies have tax problems that lead to enforcement actions by the Internal Revenue Service. When they do, they are able to go through the IRS's appeals process. Cases that are complex and that involve large amounts of money have traditionally been handled by 35 appeals team case leaders, or ACTLs. The IRS is considering taking their settlement authority away and turning it over to their managers instead.
Georgia residents with overdue bills are likely aware that the activities of debt collectors can sometimes border on harassment, and they could be alarmed to learn that four private companies have been authorized to pursue unpaid taxes on behalf of the Internal Revenue Service. The Sept. 26 IRS announcement stated that these contractors would respect the rights of taxpayers and abide by the provisions of the Fair Debt Collection Practices Act, but these assurances may not be enough to calm the fears of consumer and taxpayer advocacy groups.
Many Georgia residents have quit their jobs and opened up their own businesses. While they enjoy the freedom that being a business owner can provide, they may not realize until it is too late that the Internal Revenue Service may be closely scrutinizing their tax returns and looking for unreported income.
When people in Georgia fail or refuse to pay their taxes, the Internal Revenue Service can issue a federal tax lien. A tax lien is secured by all of the personal and real property that is owned by the taxpayer. This includes homes, business interests, vehicles and other assets.
Georgia residents who owe money to the Internal Revenue Service but do not have sufficient income to make payments under an installment agreement could qualify for what the agency refers to as currently not collectible status. You may qualify for this designation if you have no disposable income left after paying all of your bills and living expenses. When the IRS deems that an account is not currently collectible, all collection and enforcement activity temporarily ceases.
Many Georgia working parents receive a refund after they file their tax returns due to overwithholding as well as claims for the Earned Income Tax Credit and the Additional Child Tax Credit. In expectation of their refund, some families file their tax forms early in January so that they can receive the anticipated funds as soon as possible.
Tax fraud and evasion pose serious problems for both Georgia taxpayers and the IRS alike. They cost the agency resources every year and can lead to even innocent taxpayers facing stiff penalties. To heighten public awareness, the IRS publishes an annual list of the top 12 tax scams. The 2016 list includes falsification of wages, exaggerated claims and off-shore sheltering of assets. It also lists several scams Georgia residents should be wary of during tax season.
When Georgia residents make a mistake when filing their tax returns, it does not automatically mean that they will be audited. Depending on the type of error made and what attempts are made to resolve it, the matter may simply involve dealing with some paperwork.
Georgia residents may have heard about lawmakers who sent a letter to the Internal Revenue Service commissioner, the U.S. attorney general and the secretary of the Treasury regarding the return of funds that were wrongly seized from taxpayers in certain civil asset forfeitures. The letter originated from the members of the House Ways and Means Oversight Subcommittee under the direction of the subcommittee chairman and a ranking member.
In early February, the Internal Revenue Service announced that cyber criminals attacked the agency's digital systems to steal the PINs of thousands of Social Security numbers. It is the latest in a series of online attacks that have endangered the personal data of taxpayers in Georgia and nationwide.