Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR covers two topics in one as he urges readers who may have owed taxes for 2018 to increase their withholding and he discusses the tax gap and how the IRS is attempting to close it.
Fairhope, AL, May 30, 2019: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently posted a new article on his website entitled “Top Taxpayer Mistake To Avoid And How The IRS Plans To Close The Tax Gap.” Mr. Willis talks about smaller refunds and huge gaps between what the IRS receives from taxpayers and what is owed.
“Tax season is over!” says Willis, adding, “However, the repercussions of the 2018 tax year on individual taxpayers are still reverberating.” He offers an explanation, “That’s due to this being the first full year after the passing of the 2017 Tax Cuts and Jobs Act.”
According to Willis, “The biggest beef is related to withholding taxes. Even though the IRS warned taxpayers to look into their withholding, many people either ignored the warnings or simply decided to let the chips fall where they may.” He adds, “To say that most of those people were unhappy with where the chips fell is an understatement.”
“To shed light on what I’m talking about,” Willis shares, “a few statistics will help. This first one was published by foxbusiness.com. They said that nearly one in five Americans owed additional money to cover their 2018 tax bill. Of those, 32% said they had received a refund last year.”
“In addition, the average refund was a little less than the previous year. The average refund for 2018 was $2,725 versus $2,780 in 2017. But,” he emphasizes, “The good news is that getting a refund at all, even if it was less, is an indication that you didn’t underpay taxes during the year. And if you ended up owing, that means you underpaid. It’s much better to not owe even if your refund is less.”
“So,” Willis urges readers, “check with your employer to make sure you’re having enough withheld so you’re not in for an unpleasant surprise next tax season.”
Moving on to the tax gap, Willis writes, “According to the House Ways and Means Committee there is a $400 billion to $460 billion difference between taxes that are owed and those actually paid. That is what the powers that be refer to as the tax gap.” He goes on to say, “And according to an article on accountingtoday.com those figures are actually low. That’s because they don’t take into account the income owed on “illegal activities or taxes avoided on certain international activities.” As the article states, “The tax gap simply represents estimates of different types of noncompliance with our individual, corporate and other tax laws.”
After enumerating the types of non-compliance, Willis says, “So, just exactly how does the IRS plan to close that gap?” The answer, according to Willis is that they are going after, “Low-income, Earned Income Tax Credit taxpayers.” He adds, “It’s just like the IRS to try to get blood out of a stone.”
The entire article can be read at: http://www.irsallstar.com/articles/top-taxpayer-mistake-to-avoid-and-how-the-irs-plans-to-close-the-tax-gap.php
ABOUT JOHN WILLIS
Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 19 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.
ABOUT THE IRSALLSTAR TEAM
The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed, and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.
To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.