In July, the House Ways and Means Committee repealed the ability of the IRS to use private debt collections to collect taxes. Under current law, the IRS uses private debt collection services to seek out taxpayers and arrange payment. The Tax Collection Responsibility Act of 2007 can change that.
Other parts of the Act will fill in the holes opened by the change and possibly make up for the 1.1 billion in lost tax revenue. These changes include:
- Increasing the penalties on failures to file Form 1099 information returns
- Temporary increases for required estimated tax payments
- Immediate tax on individuals who renounce citizenship
Be sure to speak to your tax advisor if any of these issues affect you or your business.
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