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Hopeful skepticism about the IRS

January 8, 2009

Yesterday's post about the IRS move toward compassionate tax collection has gotten a lot of people thinking. Actually, it's gotten them rolling their eyes.

It seems that more folks believe in the Tin Man getting a heart than they do the federal tax collector. Point taken. Even when Capitol Hill mandated back in the late '80s a "kinder, gentler" IRS that focused on the "Service" part of its name, the attempt at image polishing just didn't take.

Then in recent years, Congress did an about face and started nagging the IRS to help close the tax gap. So the agency set loose private debt collectors on the public. Having those folks come after you in the name of Uncle Sam sure is a good way to endear yourself to your customer base … Not!

So why should we believe that the IRS actually is looking to help out financially troubled taxpayers this time?

To borrow a phrase from a guy that a lot of people seem to hold in high regard right now, how about the audacity of hope? Add a pinch of change that seems to be making the rounds in D.C. and maybe, just maybe, we will get a tax collection agency that remembers that the money it collects comes from actual people.

Me, I'm going to take IRS Commissioner Doug Shulman at his word, at least for now.

This whole new tax collection attitude and approach might not work out as well as the tax men and women or we taxpayers want, but I think it's a major step that the head of the IRS has publicly acknowledged that some people will have trouble paying their taxes in this economic climate. And it's an even bigger step to tell the world that the IRS doesn't want to add unduly to that burden.

So you can call me a fool if you want. I prefer to consider myself hopefully skeptical.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • DMWT
    I am with you. I am taking a wait and see approach. I am in the tax resolution industry and I can’t wait to see what happens with this. The IRS is pretty tight with resolving issues, this will hopefully help a lot of people out in hard economic times.

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