Thursday, January 06, 2011

IRS's 'hard-core' collection tactics needlessly harm taxpayers

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The Internal Revenue Service's increasing use of "hard-core" collection tactics "is inflicting unnecessary harm on financially struggling taxpayers," an in-house critic at the IRS said Wednesday.

The IRS routinely imposes liens on delinquent taxpayers, thereby damaging their credit scores and potentially jeopardizing their access to jobs, insurance and even rental housing, National Taxpayer Advocate Nina E. Olson said in an annual report to Congress.

By making it harder for taxpayers to get back on their feet, the IRS might actually reduce long-term tax collections, Olson wrote.