The struggling economy has caused more taxpayers than ever to find themselves with and outstanding tax debt that they simply cannot pay. When accepting tax settlements one of the requirements of the IRS is typically that the taxpayers file and pay their taxes on time in the future. Most taxpayers get behind initially due to a lost job, an illness or some other unforeseen event. It can be very difficult for taxpayers struggling financially to stay current on their current taxes while settling those owed for prior years. Any increase in taxes now or in the future would certainly make a difficult problem much worse for taxpayers already struggling with a tax debt.
As most people know the struggling US economy will force legislators to make difficult decisions in the upcoming years. One of the most common points of discussion is the raising of taxes. Lawmakers continue to discuss on how to handle the nation’s debt and do something significant rather than simply patch the problem. It seems likely that all potential solutions will be brought to the table during the course of the negotiations. One issue, addressed by President Obama in his 2011 and 2012 budget proposals, is the current mortgage interest deduction which is one of the nations largest tax expenditures. According to many estimates, the mortgage interest deduction cost somewhere between $80 and $103 billion in 2010, and its value over the 10-year budget window is expected to exceed $1 trillion
Proponents of the mortgage interest deduction argue that it makes affordable to taxpayers who would otherwise not be able to own a home and encourages home ownership. Critics argue that the deduction tends to benefit higher income taxpayers who would have purchased a home without the deduction and that deduction artificially drives up home prices. However, this same argument is cited by its proponents, who observe that eliminating the deduction could further impact home prices in an already depressed market.
Any significant increase in taxes either through an increase in the tax rates or the disallowance of current deductions would make it more difficult for those already struggling to pay their income taxes. With the uncertainly regarding the US tax structure and the economy in general it is more important than ever for taxpayers with significant tax debt to explore their options to actually resolve the tax debt. With taxpayers and with the US providing temporary solution will only result in a more difficult problem to solve in the future.
Contact Us our professionals here for more for more information about customized tax relief assistance. With over 16 years of experience, we have the can help you select the tax relief option that will best meet the specific needs of your tax debt situation. Contact us today at (877-889-6527 or info@protaxres.com to receive a free, no obligation consultation.
