* Kay Bell of DON’T MESS WITH TAXES answers the question “Who Owes the IRS Millions? Uncle Sam”. She points out that as of December 2006, federal government entities owed approximately $45 Million in delinquent employment taxes, according to a report issued last week by the Treasury Inspector General for Tax Administration (TIGTA). Plus as of January 2007, state government offices had not submitted to the IRS around $254 Million in payroll taxes.
Kay quotes TIGTA investigators as saying "Government entities, including those in the Federal Government, are not exempt from meeting employment tax deposit and reporting requirements. It is critical to the image of the United States that Federal Government entities be held to the same standards as private employers."
* Paul Caron, the TAX PROF, reports on George W’s plan to provide taxpayers who lose their home due to foreclosure relief from paying tax on the “cancellation of debt” in his posting “Bush Proposes Tax Relief for Homeowners in Foreclosure”.
Joe Kristan of ROTH AND COMPANY TAX UPDATES offers his 2 cents on the issue in his posting “Bush Proposes Hair 'O The Dog For Housing Bubble Hangover”.