Tax Amnesty - The Common Misconception of Tax Amnesty

Many people who have accrued tax debt with the IRS,scenario for both criminals and the IRS, and it also
misconstrue tax amnesty to apply to them. Theyreinforces the IRS' main drive, which is to collect
believe it to mean either tax resolution or possibly taxpayment from responsible parties. Though
relief. Because most taxpayers come by their taxnon-criminals who have accrued a tax liability are
debt honestly - in other words, they did not resort tobetter served through a number of different options
criminal behavior in accumulating their tax liability - theymade available by the IRS, such as the Offer in
do not qualify for tax amnesty.Compromise or Currently Not Collectible status it is
The Internal Revenue Service calls their amnestyimportant to remember that collection remains the
program, Voluntary Disclosure Policy. Put into place inprimary goal of each of them, as well.
order to encourage taxpayers to freely admit to theirIn the same way, the IRS is consistently willing to work
crimes, the Voluntary Disclosure Policy allows criminalswith an individual, on a case by case basis, to ensure
to be exonerated from prosecution provided theythe liable party pays off their tax debt. That can mean
come forward prior to investigation. In addition toreducing the liability so that the taxpayer can feasibly
admitting guilt, however, criminals must pay the resultingpay, construct an installation agreement, thereby
penalties, interest, and tax liability.extending payment over a number of years, or even
The Voluntary Disclosure Policy provides an improvedpostpone payment.