Remember, back in early January, all the talk about a kinder, gentler IRS?
The IRS was supposed to change their enforcement rules and become more taxpayer-friendly because of the economic mess.

How is that working out in reality?  Not so well.  From TaxProf Blog:

At the start of the new year, the IRS announced steps to help struggling taxpayers buffeted by the deepening recession. But two of its most effective tools have become virtually “dead letter” programs because of agency roadblocks that too few taxpayers can navigate.

…”It’s absolutely the most abusive unit within the IRS in the way in which they treat taxpayers,” said W. Calvin Bomar, a partner at Atlanta’s Bomar & Phipps and a former attorney in the IRS’ office of chief counsel, referring to centralized IRS units that review offers made by taxpayers to settle their tax liability for less than the amount owed. “Under no circumstance do they want to approve an offer in compromise. I’m talking about people who are destitute and entitled to relief under that program.”

And it results in lower collection amounts:

“Moreover, tax professionals tell me that, given the low possibility of the IRS accepting an offer, they are advising their clients to file for bankruptcy,” she said. “When that happens, the IRS generally will collect less than through the offer in compromise.”


On the other hand, who would have thought declaring bankruptcy would be an indirect way to go Galt?

Thanks to Instapundit