I hear from people every week who think their tax problem is the end of the world. It usually isn't. I'm Darrin Mish. I've resolved over $100 million in tax debt for clients. Here's what you should know.
Due in part to the continuing investigations of activities by the Internal Revenue Service (IRS), the agency has changed its focus regarding tax laws related to non-profit organizations that claim to be related to social welfare.
In late July, IRS Commissioner John Koskinen announced that the IRS wouldn’t seek to change the tax code regarding non-profit organizations that advocated social welfare. Koskinen’s change was a direct contrast to comments made in March and came shortly after appearing before a House committee investigating alleged abuses by the organization.
Specifically, that change is related to the so-called Super PACs that political groups have established in order to get around contribution limits to candidates and issues. Such groups are able to maintain their 501(c)(4) non-profit status and use as much as 49 percent of funds raised for ads considered either educational or that advocate a particular issue.
Since 2010, the IRS has seen $2.5 billion cut from its enforcement budget, resulting in the loss of 10,000 employees. In July, it was determined that those employee losses have resulted in a 43 percent drop in tax fraud investigations and a backlog of background checks for more than half its workforce.
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