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2016 Election Results Impact on IRS Tax Collection and Tax Compliance.

With the Republicans sweeping to victory in all branches of government this November 2016, what can one expect as far as the impact on the IRS and tax policy over the next four years? We can use the George W. Bush era as a good yardstick of how current Republican governance might operate. From 2001 to 2008 - we saw an IRS that functioned pretty normally - albeit with a few conservative policy touches like stricter rules for Offer in Compromise, etc.. But ultimately, the Republicans operated as "governing" conservative parties do rather than when they are in the opposition: implementing tax cuts - an almost guaranteed event in the coming months - BUT also mixed with the realism that revenues will be needed to offset the tax-cuts. One can expect that they will keep the infrastructure of the IRS mostly intact to keep the revenues coming in as was done in the G.W. Bush era. However - one can expect the elimination of the Estate Tax which affects a few thousand rich families a year.

AS far as the culture of paying your taxes and the civic duty behind it, Donald Trump certainly doesn't strike anyone as a poster-boy for good tax compliance - the first candidate in over 40 years not to release his tax returns, for example. But it remains to be seen whether his nonchalance on taxation will have an affect on the motivations of those people and businesses that want to come out of the wilderness to get into compliance? It seems to make sense that these parties might feel a little bolder in NOT acting to get into compliance as a result of the change of government. But even so - it is uncertain how the new Government will lead in the realm of encouraging tax compliance.

Update: November 17: Tax reform will be at the top of Trump and GOP agenda: Tax Reform - Top Item on GOP Agenda Next Year

Even still - there are about two and a half months before the new government takes charge. Current tax policy and IRS culture should remain in place UNTIL then. 2016 tax returns will be due on April 15th. If you haven't paid your taxes for 2016 or haven't filed taxes in a couple of years - it might be a good time to contact us:

Is 2024 the year to solve your tax issue? WATAX is ready to assist you now. Please call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you promptly.

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