How to deal with the Inflation Reduction Act and the IRS: Letters

How to deal with the Inflation Reduction Act and the IRS

Aug. 10 – To the Editor:

The Republicans claim that the Democrats have authorized and funded the IRS to hire 87,000 new employees further intruding upon Americans to fund the most recent partisan bill coined the Inflation Reduction Act.

The Democrats say that is not so. Bernie Sanders acknowledged that the bill will not reduce inflation.

According to the Treasury Department (IRS) the funds will cover a wide range of positions including IT technicians, services support staff, as well as experienced auditors who would largely be tasked with cracking down on corporate and high-income evaders. According to the IRS Commissioner, currently the number of employees is down around 100,000 from when he first started.

Where does the truth lie? Over the years, it is a fact that IRS budgets have gone up and down and certain groups of taxpayers were targeted by motivation of the political party in control of Congress. It is safe to say at this time that Americans can expect a higher volume of audits in the future. Everyone has their opinion of The Tax Man. Our country is based upon taxation with representation to support a centralized Federal government. Whatever your opinion may be, get out and vote!

Please allow me to express my opinion on how to ease the pain should the scary and intimidating IRS audit you. Take a deep breath. IRS letters and notices are often computer generated with little or no human input. Computers do not know people make honest mistakes or that some simply do not know the law. Letters sometimes result in no change to a tax liability. However painful it may be, the Tax Code requires that the IRS prove income and that taxpayers document deductions from income as allowable under the law. That being said, always ask why you have you been “selected” for audit regardless of the line item(s) on your return—i.e., part of a special compliance project? You do have a right to know.

FIRST, do not ignore any IRS notice or letter! Read it thoroughly along with all enclosures. Do not treat the enclosures as if you just received a Val Pack Coupon envelope in the mail! One of the most important enclosures you should have received is Publication 1, Taxpayer Bill of Rights. You do have rights in dealing with the IRS and do not let anyone tell you otherwise. Publication 1 is also available at www.irs.gov and contains links to other publications which may be useful. Ignoring any IRS letter or notice snowballs into a bad situation and can play into assessment of penalties if you owe tax. SECONDLY, respond to the letter as directed and keep a copy of that response. THIRDLY, document the date, manner, and time of your response.

Allow the IRS 30 days to get back to you. Comply with document requests made by the IRS. It is a fact that the IRS is currently under-staffed. Hopefully, Inflation Reduction Act funds will go to TAC, Taxpayer Assistance, making the lives of honest taxpaying Americans better.

If you do not receive a response after 30 days from the IRS, contact the IRS a second or third time and document the date, manner, and time of your response. If you still do not have an appropriate response from the IRS, contact your local Senator’s Office.

The Senator’s Office will want copies of all your correspondence and a statement of your problem and actions you have taken (hence the documentation stated above). Jeanne Shaheen’s office is helpful to her constituents in such matters. Her office phone numbers are: 603-750-3004 in Dover, NH and 202-224-2841 in D.C. Her website is www.shaheen.senate.gov.

Cheryl C. Russell

Dover

Vote Katherine Harake in Executive Council District 3 for women's health

Aug. 10 – To the Editor:

Do you think what happens in Concord – in state governance – affects you? If ever it was crucial to respond to this question, the time is NOW – this November. If access to healthcare for women and girls, including breast cancer screening and birth control, is important to you....If you support public education for every N.H. student...Then please pay attention to who is running to make pivotal decisions in Concord about the quality of life in our Granite State.

Katherine Harake is running for Executive Council in District 3. She grew up in New Hampshire and is a bold advocate for the state's women and children. Because the Executive Council only has five members and makes determinations about virtually all significant federal and state expenditures, each Council member has considerable statutory and fiscal power.

Currently District 3 (31 towns including Rye where I live) is represented by a woman who has repeatedly voted against funding Planned Parenthood clinics. Janet Stevens seems willing at every juncture to turn away federal monies that would improve the delivery of healthcare to New Hampshire's citizens. She has consistently aligned herself with anti-government extremists. Please pay attention to who is running for office this fall; Katherine Harake is a commonsense candidate running for the Executive Council because she is committed to public service and to policies that will help individuals across New Hampshire.

Ronnie Flaschner

Rye

Urge City Council to keep independent citizens on audit committee

Aug. 10 – To the Editor:

The following events happened 27 years ago:

27 years ago, the first Internet domain name is registered (symbolics.com).

27 years ago, U.S. Route 66 is officially removed from the United States Highway System.

27 years ago, Back to the Future was released.

27 years ago, the Space Shuttle Atlantis makes its maiden flight. (Mission STS-51-J).

27 years ago, Microsoft Windows 1.0 is released.

27 years ago, a joint American–French expedition locates the wreckage of the RMS called Titanic.

Also 27 years ago, Portsmouth hired a company by the name of Melanson to audit the city finances. They have been there ever since in spite of clear accounting practices indicating that entities must change auditors at least every five years.

The city needs to move away from this company in order to be in compliance with both city charter and the Government Financial Officers Associations directives.

The Audit Committee was formed to make recommendations to the City Council in this regard and yet, they have been stonewalled at every turn. The Audit Committee is made up of highly qualified financial expert volunteers from the community.

However, an ordinance changing the make up of the Audit Committee from volunteers to hired personnel is on for second reading (it takes three readings to pass an ordinance) at the next Council meeting.

So, please attend the next City Council meeting on Monday, Aug. 22 at 7 p.m. and ask the Council to keep the makeup of the Audit Committee as it currently stands.

Sue Polidura

Portsmouth

This article originally appeared on Portsmouth Herald: How to deal with the Inflation Reduction Act and the IRS: Letters