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03-04-2017, 05:14 AM
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Nyland Daily News
Presidential directive takes aim at recent legislative hurdles
By Wong Wei
Published: 4 Septem, 1582
![[Image: bdJRM43.jpg]](http://i.imgur.com/bdJRM43.jpg)
President Kohout seen some time after his memo to the Treasury was published.
NYKOPING - Debate over the fate of President Morgen's income tax plan finally drew to a close in the Federal Assembly a couple days ago with the definitive defeat of Kohout's plan to reduce VAT on food and hygene products, as well as slash Federal income taxes across all incomes. The defeat came at the hands of PCP and NCL legislative leadership breaking with their peers in the cabinet to put the final nails in the coffin of the proposed tax plan.
However, while one battle has ended, another has just begun with a memo early this morning from the White House effectively changing Federal Income and Revenue Service collection procedures.
Treasury Secretary Annalisa Pearce made public to the media the president's directive to the Treasury, stating that the country's federal tax enforcement and collection agency would be downsizing starting in 1583, from the current staffing of 129,000 to 109,000 employees, primarily from the bureau's enforcement division, which saw massive expansion under President Karlsson. More surprising, though, was news that the agency would, temporarily, no longer pursue full payment from reported underpaying individuals who paid at least two-thirds of their reported income tax liability, and would issue waivers of penalties for underpayment of tax to such individuals. These changes would take effect for the 1582 filing season.
In effect, if you pay two thirds of what you owe, you can keep the remainder without fear of FIRS coming after you.
While invariably good news for essentially everyone who pays income tax in Nyland, the move does come with a plethora of detractors, livid with the administration's willingness to by the administration's side-stepping of the Federal Assembly's blockage of Kohout's tax plan. Treasury Secretary Pearce has flatly denied allegations of "going beyond the Treasury's authority," citing that the new procedure is in place so that FIRS agents may "direct more of their limited resources to more of the especially erroneous cases of fraud and abuse," and that they do not absolve taxpayers of their responsibility to file their taxes correctly as dictated by law and regulation.
"This is an exemption from assessed penalties," quoted Secretary Pearce, "not an exemption from proper filing, where audits and penalties will still be assessed."
For his part the president has remained mum regarding comments or responses to accusations, but government spokespersons mentioned that Kohout had considered the idea for some time and that this directive was "in the pipe for months," but could not deny that recent events had "influenced" his decision.
The Treasury memo isn't the final say in this turn of events, however, as the announced changes will not go into effect for some weeks: the proposed change to FIRS rules must first still be submitted as a "Notice of Proposed Rulemaking" to the Federal Register, with the changes being open to the public for discussion and comment before being changed, dropped, or adopted.
Presidential directive takes aim at recent legislative hurdles
By Wong Wei
Published: 4 Septem, 1582
President Kohout seen some time after his memo to the Treasury was published.
NYKOPING - Debate over the fate of President Morgen's income tax plan finally drew to a close in the Federal Assembly a couple days ago with the definitive defeat of Kohout's plan to reduce VAT on food and hygene products, as well as slash Federal income taxes across all incomes. The defeat came at the hands of PCP and NCL legislative leadership breaking with their peers in the cabinet to put the final nails in the coffin of the proposed tax plan.
However, while one battle has ended, another has just begun with a memo early this morning from the White House effectively changing Federal Income and Revenue Service collection procedures.
Treasury Secretary Annalisa Pearce made public to the media the president's directive to the Treasury, stating that the country's federal tax enforcement and collection agency would be downsizing starting in 1583, from the current staffing of 129,000 to 109,000 employees, primarily from the bureau's enforcement division, which saw massive expansion under President Karlsson. More surprising, though, was news that the agency would, temporarily, no longer pursue full payment from reported underpaying individuals who paid at least two-thirds of their reported income tax liability, and would issue waivers of penalties for underpayment of tax to such individuals. These changes would take effect for the 1582 filing season.
In effect, if you pay two thirds of what you owe, you can keep the remainder without fear of FIRS coming after you.
While invariably good news for essentially everyone who pays income tax in Nyland, the move does come with a plethora of detractors, livid with the administration's willingness to by the administration's side-stepping of the Federal Assembly's blockage of Kohout's tax plan. Treasury Secretary Pearce has flatly denied allegations of "going beyond the Treasury's authority," citing that the new procedure is in place so that FIRS agents may "direct more of their limited resources to more of the especially erroneous cases of fraud and abuse," and that they do not absolve taxpayers of their responsibility to file their taxes correctly as dictated by law and regulation.
"This is an exemption from assessed penalties," quoted Secretary Pearce, "not an exemption from proper filing, where audits and penalties will still be assessed."
For his part the president has remained mum regarding comments or responses to accusations, but government spokespersons mentioned that Kohout had considered the idea for some time and that this directive was "in the pipe for months," but could not deny that recent events had "influenced" his decision.
The Treasury memo isn't the final say in this turn of events, however, as the announced changes will not go into effect for some weeks: the proposed change to FIRS rules must first still be submitted as a "Notice of Proposed Rulemaking" to the Federal Register, with the changes being open to the public for discussion and comment before being changed, dropped, or adopted.