Target Practice

Despite its focus on tax collection, the Internal Revenue Service has recently been criticized for unfairly targeting low-income taxpayers.

Low-income taxpayers are often the target of the IRS because they are seen as easier to collect from and less likely to have the resources to contest the IRS's actions. In many cases, the IRS will seize assets or garnish wages to collect back taxes, which can have devastating effects on those who are already struggling to make ends meet.


One of the most common ways that the IRS lines up low-income taxpayers is through the use of wage garnishments. This is when the IRS takes a portion of an individual's paycheck before they receive it, in order to pay off their tax debt. This can leave individuals with little to no money to cover their basic living expenses, such as rent, food, and utilities.

Another way that the IRS pursues low-income taxpayers is through the seizure of assets. This can include bank accounts, homes, and even personal property. Seizure can also be used as a way to collect back taxes, even if the individual does not have the means to pay the debt off in full.

The IRS has also been known to target low-income taxpayers through the use of aggressive enforcement tactics. This can include threatening phone calls and letters, and even in-person visits from IRS agents. These tactics can be overwhelming and stressful for individuals who are already struggling to make ends meet. Especially if they don't have money for legal representation.


It is important to note that the IRS does offer a variety of programs and options to help taxpayers resolve their tax debt, including payment plans and offers in compromise. However, these options may not be readily available or accessible to low-income taxpayers, and not every tax firm is equipped to assist clients with this process. 

Takeaway

The fact of the matter is the IRS's targeting of low-income taxpayers is a serious issue that will hopefully be addressed soon. How can you stay protected? One way is by making BYB Tax your 'one-stop shop' for all things tax related! 

Our tax experts work hard to ensure that all taxpayers are given top-tier service that is fair and equitable regardless of their income.  Because at the end of the day, everyone deserves to be treated with respect and dignity.

Written by Nicholas A. Miller, ERO

Photo Credit: Karolina Grabowska

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