In a recent article in Forbes, a tax attorney of many years, Stephen J. Dunn, discussed several challenges that the new IRS Commissioner will face in the coming term. The list, which he states is from a practioner’s perspective, gives insight into the difficulties both tax attorney and taxpayer face when dealing with the U.S. Tax System.
The first issue on Mr. Dunn’s list was a functioning online transcript delivery system. As a tax attorney, Mr. Dunn is acutely aware of the impact the transcript system has on a tax law practice, even going so far as to declare it the core of a tax practice.
The next challenge the new commissioner will face is coming up with ways to stop the scam artists that prey upon unsuspecting taxpayers, particularly those that offer quick and easy tax resolution services. Operators of these seedy services, with no actual tax resolution knowledge or credentials, target those with federal tax liens. Once the scam artists have obtained a large retainer—often $5,000-$10,000—and fled, the taxpayer will be left with an even greater debt and an increasingly expensive tax issue.
As Mr. Dunn stated in the last challenge listed, the new IRS commissioner will have to find new ways to “protect the public fisc.” The U.S. Treasury has paid out tens of millions of dollars to undeserving taxpayers involved in tax schemes. The scheme that has been circulating the country in recent years involves filing fraudulent Forms 1099-OID. Promoters involved in this scheme sell the scheme to taxpayers, preparing fraudulent 1099-OID.
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