Digital Privacy & The IRS

February 3, 2023 by admin

Thursday February 2, 2023 – As Ronald Reagan once said: “Freedom is never more than one generation away from extinction.” Americans, rely on the government to keep us safe and secure, but we also expect our Constitutional rights to remain intact. The Internal Revenue Service’s (IRS) ability to gather taxpayer financial records without a warrant is unconstitutional and a blatant violation of our Fourth Amendment rights and an affront to the freedoms we hold dear.

Our Constitution recognizes our privacy for good reason—to protect us from government interference in our personal lives. Yet, when it comes to tax investigations, courts essentially give carte blanche authority to the IRS allowing them to seize and search through private financial information without regard for constitutional limits.

Digitization has only made this problem worse; with the IRS able to access digital records with relative ease, it has become increasingly difficult for taxpayers to protect their own financial information from unwarranted invasion. Yet Congress continues to pass legislation that grants the IRS even greater powers when it comes to collecting taxes, including bills requiring reporting on payments as low as $600 and providing chauffeurs for the IRS commissioner.

To deny Americans their right to privacy undermines centuries-long victories safeguarding liberty and diminishes our national character altogether; something every American should be fighting against before it’s too late!

Attorney Steven A. Leahy examines the IRS invasion of taxpayer privacy on Today’s Talk Talk.

https://www.nationalreview.com/2023/01/an-irs-that-is-above-the-law-threatens-taxpayers-security/

https://www.nationalreview.com/2023/01/will-the-irs-lose-its-80-billion-appropriation/?utm_source=recirc-desktop&utm_medium=article&utm_campaign=river&utm_content=next-article&utm_term=first

https://www.jpost.com/business-and-innovation/banking-and-finance/article-730308

https://www.fightbacknow.com/

Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649

AI & IRS – Beware!

February 2, 2023 by admin

Wednesday February 1, 2023 – As artificial intelligence (AI) continues to improve, the federal government is making great strides towards keeping up with the ever-increasing speed of change. This includes the Internal Revenue Service (IRS). The IRS is undergoing a computing revolution in which artificial intelligence and other software advancements will be implemented. These advances will drastically change how the IRS operates, allowing them to monitor income transactions more closely than ever before, bringing with it an increased chance of audits or penalties if you fail to follow their regulations.

Business owners need to stay ahead of these changes, familiarizing themselves with current regulations and preparing for any future updates that may come their way. Even if you follow all the rules now, it’s possible that you could get caught off guard by new technology-driven policies that you were unaware of before. It pays to be prepared!

How to Protect Yourself

The best way to protect yourself from being audited or penalized by the IRS is education and due diligence. Familiarize yourself with all aspects of tax law so that when changes occur (and they will!) you know exactly what’s expected of you as a business owner. Make sure that your records are accurate and up-to-date; double check your math and keep records organized so they can easily be accessed if needed. Additionally, consider investing in an audit protection plan or consulting with Opem Tax Advocates, Inc.—this could save time, money, and headaches down the line!

It’s no surprise that technology has drastically changed our lives over the past decade; everything from communication to travel has been transformed by advances in computing power and artificial intelligence capabilities. Now, these same technologies are also transforming how governments operate—including how we manage taxes here in America. As a business owner, understanding how this revolution affects your bottom line is essential for staying on top of your taxes—and avoiding any unpleasant run-ins with Uncle Sam! With knowledge comes power; educate yourself on current tax laws so that when changes come around (and they will!) you’re ready for whatever new regulations may exist. With preparation comes peace of mind!

If you are already fighting a tax problem, consider attending a FREE Tax Workshop hosted by Attorney Steven A. Leahy of Opem Tax Advocates, Inc. Go right now to FightBackNow.com to secure your seat at the FREE Tax Workshop. Seats are limited and fill up fast. There’s no time to waste FightBackNow.com

https://thehill.com/opinion/finance/3832574-coming-soon-irs-on-big-tech-steroids/

https://www.fightbacknow.com/

Taxpayer Protection Act – DOA

January 17, 2023 by admin

Monday January 16, 2023 – The Biden Administration is pushing for 87,000 new Internal Revenue Service (IRS) agents in order to increase the amount of audits against families and small businesses.

This proposal would cost taxpayers an additional $80 billion on top of their already existing $14 billion annual IRS budget. Thankfully, Republicans in Congress are fighting back with the passage of the “Family and Small Business Taxpayer Protection” Act. This act will rescind all new IRS funding and protect middle-class families and small businesses from IRS audit harassment.

Unfortunately, this Act has Zero chance of passing. The Democrats still have control of the Senate, and President Biden would never sign such a bill.

In another story, the IRS has set a date of January 23, 2023 for tax season to open.

Attorney Steven A. Leahy looks at the effort to curb the power of the IRS.

https://thehill.com/opinion/3811279-irs-funding-dont-feed-the-mouth-that-bites-you/

https://www.nytimes.com/2023/01/11/business/irs-tax-returns-backlog.html

https://www.denver7.com/news/national/irs-sets-date-for-tax-season-but-taxpayers-can-begin-filing

Most Serious IRS Problem – Processing Delays

January 13, 2023 by admin

Thursday January 12, 2023 – The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve problems with the agency. Each year, by law, the TAS releases a report to Congress highlighting the most serious problems encountered by taxpayers. The report, known as the National Taxpayer Advocate’s (NTA) report, identifies systemic issues that impede taxpayers’ ability to exercise their rights and recommends solutions to those problems.

The 2022 National Taxpayer Advocate report identified ranked the ten most serious problems encountered by taxpayers:

Processing Delays
Complexity of the Tax Code
IRS Hiring & Training
Telephone & In-Person Service
Online Access for Taxpayers and Tax Professionals.
E-File & Free File
IRS Transparency
Return Preparer Oversight
Appeals
Overseas Taxpayers

The biggest issue identified in the report is Processing Delays. That finding isn’t news to any taxpayer. The processing delay has been reported since last year.

The recently replaced IRS Commissioner, Charles Rettig told a Congressional hearing last March the backlog would be cleared by the end of 2022.

In the just released report the National Taxpayer Advocate, Erin Collins, wrote to Congress, saying ““We have begun to see the light at the end of the tunnel, I am just not sure how much further we have to travel before we see sunlight.”

So, the IRS did not clear the backlog by the end of 2022, despite the additional funding to do so. The additional funding BEFORE the additional $80 billon.

Attorney Steven A. Leahy looks at the Number one problem according to this report – Processing Delays – on Today’s Tax Talk.

https://www.taxpayeradvocate.irs.gov/reports/2022-annual-report-to-congress/most-serious-problems/

https://www.washingtonpost.com/business/2023/01/11/irs-backlog-delays-refunds/

https://www.thinkadvisor.com/2023/01/11/taxpayer-service-expected-to-improve-in-2023-irs-says/

https://www.journalofaccountancy.com/news/2022/mar/commissioner-congress-irs-will-clear-backlog-years-end.html

New Congress First Target – IRS

January 12, 2023 by admin

Wednesday January 11, 2023 – With the new House Majority, Republicans are pledging to use their power to identify agencies at which to slash budgets. Their vote on Monday was the first step in this process, passing a repeal of $71 billion in IRS funding.

The Inflation Reduction Act was passed by Democrats in the last Congress – without a single Republican vote. It was designed to provide funding over 10 years to boost enforcement at the IRS after massive hiring surges.

It’s important that business owners stay informed about any changes related to taxes and filing procedures so they can comply with all requirements quickly and accurately. Keeping up-to-date on any news related to taxes is critical – especially as tax season approaches – so businesses can remain compliant while also taking advantage of any benefits they may be entitled to receive under current laws. Additionally, making sure you have accurate records and staying organized throughout the year can help reduce any potential issues down the line if you do get audited or need help with a specific issue related to your taxes or filing status.

Attorney Steven A. Leahy explores the details of this act and how it will affect you.

https://news.yahoo.com/heres-why-the-house-gop-made-defunding-the-irs-its-first-priority-123223299.html

https://www.govexec.com/workforce/2023/01/house-republicans-say-clawing-back-irs-funding-just-beginning-agency-spending-reductions/381647/