Number of delinquent taxpayers skyrockets

WASHINGTON, April 14 (Reuters) - As a deep recession strips Americans of their jobs, homes and investments, the 2009 U.S. tax season promises to see a large uptick in first-time delinquent income taxpayers.

"Our calls are up 280 percent," said Richard Boggs, founder and chief executive of Los Angeles-based Nationwide Tax Relief, a firm that helps delinquent taxpayers resolve tax issues.

"We've seen a huge rise in what we call the rookie delinquent taxpayer," he said. "They are incredibly scared, and they have no idea what's going to happen to them because, God bless them, they've never owed before."

As the weak economy puts job security and a steady flow of income on a slippery slope, many are wary of the U.S. tax man, tax consultants say.

With household balance sheets under pressure, more U.S. households are having trouble keeping up with their day-to-day bills and struggling to pay their taxes.

"Folks are not paying their taxes because they are spending it on necessary living expenses," said Kristin Lavieri, an accountant with Weinstein & Anastasio, PC in Hamden, Connecticut.

She added that more of the self-employed, who are required to pay taxes each quarter, are likely to end up with back taxes. "When there is not enough money for general operating expenses, there most definitely isn't going to be enough for quarterly estimates," Lavieri said.

Among those not self-employed, many also have to make tough decisions that could carry long-term financial consequences.

Many withdrew funds from 401k and IRA retirement savings accounts before the permitted time, unaware of the punitive taxes and penalties this would generate, said Larry Walker Jr, president of the financial and tax services firm 4-Serenity Inc in Snellville, Georgia.

Withdrawals from a retirement account before reaching the age of 59.5 are considered taxable income and generally incur an additional tax of 10 percent of the amount.

Other taxpayers did not have enough tax withheld from paychecks. As a result, they now owe taxes or will not receive the amount of refund they usually do, Walker said.

FEAR, SECRECY CAUSE MORE PROBLEMS

"If we are seeing a nearly threefold increase in people who have tax problems who have never had tax issues, it shows that things are worse than people think right now," Boggs said.

But tax woes are such a taboo issue that over 40 percent of Boggs' clients have told him nobody knows about their problems, and that often includes their spouses.

"When they see a tax bill that they know they can't pay, they freeze up," Boggs said. "A very innocent procrastination can get you into a lot of hot water with the IRS."

The Internal Revenue Service, which collects taxes in the United States, vowed to show its gentler side this year.

"We recognize the economic realities that are out there," IRS Commissioner Doug Shulman told reporters. "We're available to work with people."

Critics are skeptical this will happen. The agency collects much of the $3 trillion that funds the government.

IRS agents were given more flexibility in their collection actions, including the ability to reduce or suspend monthly payments on back taxes so those hit hard by the financial downturn are not forced to default on their tax payments.

But Boggs said IRS policies are adding to the fear Americans feel for the traditionally secretive agency while outdated guidelines make the prospect of collection action scary.

National Taxpayer Advocate Nina Olson, head of an independent organization within the IRS that helps taxpayers, seemed to echo this sentiment in an annual report to Congress.

The report revealed that penalty provisions in the tax code have not been comprehensively reformed since 1989, and the complexity of the tax code is a serious problem.

An elderly woman in Austin, Texas, who asked not to be named, said her $3,000 debt to the IRS grew to around $60,000 in taxes and penalties over 16 years despite the fact that she paid off the initial debt within six months.

The 61-year-old is disabled and suffers from multiple health problems. The IRS now takes $133 each month from her Social Security disability check.

The practice is part of the agency's Federal Payment Levy Program, which allows up to 15 percent of any federal payments a delinquent taxpayer receives to go directly to the IRS until their overdue taxes are paid in full.

Olson noted that too often this automated levy system withholds Social Security payments to taxpayers with incomes below the poverty line. If these cases had been subject to human review, the report says, many would have been classified by the agency as unable to pay.

Some wealthier people are also finding themselves overwhelmed by tax burdens. "America's top earners are suffering a new one-two punch," Boggs said.

"Not only are America's wealthiest suffering the largest losses in nearly a century, but the IRS will be seizing what little resources they do have left in record time," he said.

"Some of my rich clients are having big problems," said Lance Wallach, CEO and president of Veba Plan LLC, a financial consultancy firm. "Hundreds of them do not have liquid cash to pay bills."

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Nearly two years after the January 6 riot at the Capitol, the mystery of who planted two pipe bombs outside the Republican and Democratic National Committee offices remains unsolved. Thankfully, the bombs were found and disabled before they could cause any harm, but with their potential for devastating consequences — not to mention the massive investigations into all things relating to Jan.6 — why does it seem like this story has practically fallen off the face of the earth?

No one in the corporate media has even tried to look into it, and the government's narrative that the bombs were meant to be a diversion for the Capitol riot doesn't make sense when you look at the timeline of events.

So, on this week's episode of "Glenn TV," Glenn Beck broke down the timeline of events that led up to the discovery of the bombs and how the facts appear to point toward one sinister conclusion:

  • Security footage reportedly shows that the two pipe bombs were planted in front of the DNC and RNC the day before the riot.
  • Neither bomb was concealed.
  • Then-Vice President-elect Kamala Harris entered the DNC headquarters at approximately 11: 30 am on January 6.
  • At approximately 12:40 pm on January 6, the first pipe bomb was discovered sitting in plain sight outside the DNC headquarters, raising questions as to why the incoming vice president didn't have better security.
  • The pipe bomb had a one-hour kitchen timer that had apparently stopped with 20 minutes left on the timer. (Remember, the bombs were planted on January 5.)
  • The Secret Service reportedly erased their communications from January 5t and January 6 by "accident."

"It doesn't really hit you unless you look at it as a timeline, and then you're like, 'wait a minute that doesn't seem right.' The unsolved mystery of the pipe bomb has been used by the government to show that January 6 riot was part of a larger coordinated attack ... that the bombs were a diversion to get the Capitol police away from the Capitol," Glenn explained.

"But the bomb had a one-hour timer and it was planted at 8 p.m. the night before. So the bomb would have to go off the night before at about 9 p.m. on January 5. How's that a diversion? It's not physically even possible."

Watch the video clip below to hear more or find the full episode of "Unsolved Mysteries: 7 Deep-State SECRETS Biden Wants Buried" here.


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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

The Biden administration has weaponized the federal government against the American people. But officials have hidden most of their attacks behind a secretive and cavernous bureaucracy.

There are so many unsolved mysteries that Joe Biden and the Democrats not only refuse to answer, but in some cases appear as though they are ACTIVELY trying to cover up. Like what happened on January 6? Who is Ray Epps? Who planted the pipe bombs? What’s in Biden’s executive order on elections? What happened to the SCOTUS Dobbs leaker? What’s the COVID origin story? What’s happening with crypto, FTX, and the Central Bank Digital Currency?

These are just a few of the unsolved mysteries that we need to DEMAND answers on. On his Wednesday night special, Glenn Beck outlines a chalkboard that will leave you convinced the DOJ and FBI are LYING to the American people. The more secrets the Deep State holds, the more its power over us grows.

Watch the full episode of "Glenn TV" below:

Unsolved Mysteries: 7 Deep-State SECRETS Biden Wants Buried | Glenn TV | Ep 238

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

'I NEVER thought I'd talk about this': Was Glenn Beck's CHILLING dream actually a WARNING?

(Left) Photo by Charles McQuillan/Getty Images/(Right) Video screenshot

On the radio program this week, Glenn Beck decided to share a very unusual, extremely vivid dream he had ten years ago — a dream he thought he'd never talk about on the air until he began to see it as a warning that we should all know about.

"I never ever thought I would talk about this on the air, but I feel compelled to tell you that seasons have changed again, and it is becoming more and more apparent. You need to know what you're dealing with," Glenn began.

"If you are a long-time listener of this program, you know that one of the reasons I left New York ... was that I had a medical condition. Part of it was brought on by no REM sleep for about 10 years ... and for 10 years, I never had a dream," he explained. "However, during this period I had what could be described as a dream. I do not believe it was."

"In this 'dream' ... I am in a hallway of the White House. And I'm walking into a big room where there's a bunch of cubicles, and people look up like, 'who's walking in?' There are people behind me, but I don't know who they are yet. I just know I'm being pushed forward by them," Glenn continued. "I realize that everybody in the White House is terrified of who's ever behind me ... I glance back and I see people that are in uniforms that I've never seen before. I have seen them since, but that will be for some other time...."

"So, these guys in the uniforms are in the hallway, and one guy says, 'him, him, and him, take them out' ... and I'm the only one still sitting at the table. They go out ... then I hear three gunshots and they say, 'yeah, that happened pretty quickly for them. However, you, we're going to get to know ... because you really have no idea who you're dealing with.' And that's when one of them ... ripped off his face and he was Satan. Or, he was a demon, okay? Horrifying. Then I wake up."

Glenn went on to explain that, while the dream was so vivid and disturbing that he thought about it almost daily for well over a year, it was what happened next — during a discussion with a prominent religious leader — that really hinted his "dream" might actually have been a vision of the future and a warning.

"I will never forget it, and I will never dismiss it," Glenn said of what he learned. "I'm sharing it with you today because you must not dismiss what you're dealing with. We are not in a battle [of] politics ... our whole culture has become evil."

"You have to get to a point where you are going to choose a side. There will be no one left on the benches, and if you think you can sit it out you will end up on the wrong side. I urge you to know who you serve. This is a different time in human experience. This is not normal. None of this is normal," he warned.

Watch the video clip below to hear more from Glenn. Can't watch? Download the podcast here.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.