How Does the Automated Tax Collection System Work?

People are often confused about the workings of the automated tax collection system. So let’s talk about what this system does. The ATCS or the automated tax collection system takes care of the IDRES or Internal Data Retrieval System balance due and the cases of non filers that require telephone communication for the resolution of the issue.

To put the definition in lay man terms, the ATCS is a system that communicates with the tax payers who have defaulted on their tax payments. And this computerized system can pose a lot of problems. The ACS stores almost all the data on tax payers including details about their audits. This system was introduced in 1980 and after its introduction the tasks of providing notices to tax defaulters, examining cases and communicating with delinquent tax payers was assigned to the taxpayer examiners.

The ATCS supports every single piece of detail that has been uploaded to it; it contacts the creditors, collects court records, bank statements and corporate files; so basically, it has every single piece of information about your financial dealings. However, people often question the efficacy of this automated system in collecting taxes.

Most recently the ATCS was in debate because there was a congressional hearing to decide which offers the more effective and efficient mode of tax collection the ATCS or privatization. Most consume tax advocates and people who are set against privatization of such key portfolios believe that it would inappropriate to privatize tax collections so they support the ATCS which they also believe is the cheaper way out.

Nina Olsen; who was the Advocate for the IRS National Taxpayers argued against the privatization of tax collection citing the high cost of almost $12 million involved in this method. This cost included the commission of the private collectors which can go up to an astounding 24% of the total taxes collected. In the year 2008; these collectors were projected to bring in an extremely unimpressive amount of just as $23 million however, the government’s net revenue would be $11m.

On the other hand, the ATCS requires no commission payments and has only cost the government $7 million in investment. However, its collections have been impressive to the say the least at $91.8 to $145 million brought in by the system. This is certainly more cost efficient and effective than the $81 million government dollars which are invested in the privatization of tax collections.

The IRS on its part defends the outsourcing of the tax collection process complaining that it is understaffed to collect debt and it simply cannot afford the added expenditure of hiring more tax collectors. However, they have decided to regain control of some of the cases so that they determine the efficacy of both methods.

Colleen Kelley, a spokesperson for the National Treasury Union Employees testified at the congressional hearing stating that the union that certainly does not deny the fact that hiring outside collectors (outsourcing tax collection) is the more expensive option than getting the work done by a qualified and trained IRS employee. Also opting for the former increases the risk factor associated with the providing extremely sensitive information about an individual to private companies.

Kelley, further went on record stating, that IRS employees were not only efficient but also presented a more cost effective way of tax collection with each IRS tax collector costing the US government 40 cents for ever $100 that they collect. In such a case there is certainly no reason to bring in private collectors.

In conclusion, most tax payers and experts believe that the ACS is better than private debt collection agencies. And that instead of letting private collectors handle the matter, the government can actually recoup revenues by letting IRS employees handle the job. If you have any questions related to the ATCS system or tax regulations; it is imperative to get in touch with a Dallas tax attorney or a qualified tax accountant at the earliest.

End the Dread of Tax Time With a Consultation From Local Tax Advocates

Maybe there isn’t a specific phobia name attached to the condition, but many people suffer from an irrational fear of facing their annual taxes. This tax season, lay your financial fears to rest with a free consultation from a knowledgeable tax attorney or resolution professional close to home.

It happens every year shortly after you hang the new calendar on the wall. The financial statements start arriving in the mail and you begin to panic about getting your taxes done. Well, enough already. Whether you have complex tax issues that send you scrambling for answers or you’re simply fed up with facing the filing alone, why not take advantage of a free consultation with a nearby tax professional?

That’s right. Many tax attorneys and resolution specialists today will sit down and review your specific financial situation with absolutely no fee for the initial appointment. Here’s your chance to present the particulars of your current case and see what a trained and experienced tax advocate can actually do for you. So if you’re an individual grappling with back tax returns or a business owner seeking tax debt relief, you’ll be able to quell your seasonal fear and face even your worst tax problems with new found calm and confidence.

Dealing with IRS tax resolution can be especially scary for taxpayers who lack the necessary know-how to deal with these types of complex problems. After all, issues such as back taxes can lead to stiff penalties and costly consequences including wage garnishment, property seizure, and steep interest and fines. In no time at all, you could find yourself up to your neck in debt, and all because of errors on your tax forms that could have easily been prevented with the counsel of a qualified tax law attorney. Make this the year you get the back tax help you need with expert guidance on such effective remedial strategies as:

* Offers in compromise
* Penalty abatement
* Installment agreements
* Innocent spouse relief
* And others

Having an experienced tax advocate in your corner can make a tremendous difference as you navigate through the complexities of the latest tax codes. From IRS audits to delinquent payroll taxes, each troublesome tax matter must be handled in a precise and timely manner in order to achieve the best possible outcome for you and your finances. So don’t head down that risk-riddled road alone. Even if your financial house is in order and you’re simply searching for tax filing assistance to get every dollar and deduction you undoubtedly deserve, contact your local tax specialist today to make an appointment for a free consultation. Because hanging up your calendar should bring the promise of a new year, not the dread of having to do your taxes.

CPA Firms Provide the Most Experienced and Qualified Tax Preparers

Selecting a capable tax preparer and tax planning adviser can be a hit-or-miss proposition unless you narrow down your search to licensed accountants, such as certified public accountants (CPAs) and enrolled agents. Having an experienced accountant prepare your tax returns can help you minimize your tax liability and stay in compliance with federal and state tax laws.

Some people like to prepare their own taxes, even if they don’t have any training or experience as an accountant. Although there is decent software on the market that can guide you through the process of preparing your own taxes, most software programs have their weaknesses as well as strengths. There’s also the element of human error to consider. Even the most interactive tax preparation software can not always prevent users from inputting incorrect data, so the risk of making a mistake or missing a deduction is always present.

Having your tax returns prepared by a CPA accounting firm dramatically reduces the chances of errors or omissions. CPA firms typically employ experienced tax accountants who have earned an accounting degree and have passed a rigorous certification process. A CPA firm is generally staffed by accountants who have gained additional experience and education, as compared to most of their unlicensed colleagues in the tax services field.

While there are a lot of competent accountants and tax preparers who are not CPAs, their capabilities to help clients can be limited. For example, many accountants are not authorized to represent tax clients before the IRS. While your chances of being singled out for an IRS audit may not be high, it’s comforting to know that your tax preparer has the credentials to be your spokesperson and tax advocate if the need arises.

Having a personal accountant from a CPA firm also increases the chances that you’ll get all the tax credits and deductions that you’re entitled to. That translates into not having to pay more taxes than necessary, which can result in substantial savings over a period of time. An experienced accounting firm or CPA will also provide tax planning guidance to help you avoid future IRS problems, such as owing IRS back taxes. If you need tax resolution services down the road, CPAs are qualified to help you with that, too.

Most CPA firms are highly qualified to provide sound financial advice and accurate tax preparation services. The higher educational, certification, and ethical standards required of CPAs often make them a superior long-term choice as a tax consultant. Federal and state tax codes are complicated and tend to change every year, so it pays to have a personal accountant who is well versed in all the latest deductions, tax credits, and potential red flags that could trigger a tax audit. Having a CPA as your tax consultant does not have to be an expensive choice, either, but it’s a good idea to compare fees to make sure your potential tax adviser is competitively priced.