We’ve emphasized before the power the Internal Revenue Service has in collecting tax debt. For this reason, a visit from an IRS revenue officer is going to be an extremely intimidating experience. Now, in response to an order from Congress, the IRS announced its intention to allow private contractors to collect on certain back taxes.
While one commentator feels a recent ruling from the U.S. Tax Court case is "good news," many taxpayers will not feel the same. (The commentator, by the way, also happens to be the lead attorney representing the whistleblowers in the case. These are whistleblowers accusing taxpayers of wrongdoing.)
For Michigan individuals and businesses, an audit is an intimidating process that most of us would prefer to avoid. The purpose of the IRS in conducting audits is to "ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is substantially correct."