By Carmela Walrond, Managing Tax Attorney Under the plan, taxpayers will have three tax rates: 35%, 25%, 12%. The plan does not state which rate would apply to someone earning $20,000 or $50,000 would pay. The standard deduction (currently $6,300 for individual, $9,300 Head of Household, Married filing jointly $12,600) would double. In other words, a …
The push to have the IRS issue TABOR to clearly define a taxpayer’s rights was spearheaded by the Office of the Taxpayer Advocate, an independent office within the IRS, headed by the National Taxpayer Advocate Nina E. Olson. In fact, Olson in her 2013 Fiscal Year Report to Congress listed the adoption of a Taxpayer Bill of Rights as her top objective for the IRS. She articulated in her report that “[a] thematic, principle-based list of core taxpayer rights would serve as an organizing principle for tax administrators in establishing agency goals and performance measures, provide foundational principles to guide IRS employees in their dealings with taxpayers, and provide information to taxpayers to assist them in their dealings with the IRS.” 1
As the year winds down, with only a few months left in 2015, we all know what December 31st signifies—and not just the end of the calendar year. Many of our clients come to us after the first of the year with tens of thousands of dollars owed to the IRS that they just can’t afford. Here are just a few tips to help you manage your tax liability.