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Groen, Kluka & Company, P.C.
Certified Public Accountants & Management Consultants
888 West Big Beaver Road, Suite 790
Troy, MI 48084
Kevin Delaere
Groen, Kluka & Company, P.C.
888 West Big Beaver Road, Suite 790
Troy, MI 48084
Phone: 248.362.5000
Fax: 248.362-0999
http://www.groenkluka.com
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Top Two Problems Faced by Tax Payers Identified by Groen, Kluka & Company, P.C.
TROY, Michigan - January 12, 2004 - The top two problems facing taxpayers today are the Alternative Minimum Tax (AMT) and sole proprietor tax noncompliance, said Jeff Groen, managing partner for Groen, Kluka & Company, P.C., citing a report released earlier this month by National Taxpayer Advocate Nina E. Olson.
By 2007, nearly 95 percent of AMT revenues will be attributed to personal and dependant exemptions, the standard deduction, state and local taxes, and miscellaneous itemized deductions. Some tax professionals have recommended that Congress repeal the AMT or make changes to lessen the severe impact on middle-income taxpayers.
Olson's third annual report to Congress as the National Taxpayer Advocate, focuses on the need for the IRS to actively enforce tax laws Simultaneously the IRS should also bear in mind taxpayer rights.
The report states there is more than a $132 billion gap attributable to income not reported by self-employed persons. It is estimated that $81 billion is attributable to independent contractor sole proprietors.
This fact makes it more likely that Congress would consider enacting a withholding requirement on payments to certain categories of non-wage workers.
"These are two issues which likely will result in some type of laws in the near future," said Groen. "It also reaffirms the importance of confidentiality and honesty by all parties when dealing with their taxes."
The professionals at Groen, Kluka & Company, P.C. can help clients deal with these confusing and difficult issues. For more information, contact us at (248) 362-5000.