Saturday, December 23, 2006


* The IRS has officially announced new guidance today to help tax filers claim the extended tax breaks on their 2006 tax returns.

The guidance indicates where and how the extended tax breaks are to be reported on the 2006 Form 1040 and verify what I wrote in yesterday’s posting.

Part of this new guidance is the release of Publication 600, which contains the 2006 optional state sales tax tables along with a worksheet to calculate the deduction and general instructions.

* IRS Commissioner Mark Everson has acknowledged that using private agencies to collect debts under a new program will cost more than hiring additional agents to do the job.

"I admit it. I freely admit it," Everson said.

Everson told lawmakers on the House Appropriations subcommittee that oversees the IRS budget earlier this year that the private collection agencies the IRS uses will get 22% to 24% of the money they collect.

It has been estimated that IRS employees could collect the same debts at a cost of only 3% of what they collect.


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