Will They Get the Geithner/Rangel Treatment?

More Americans are avoiding their tax obligations, which ordinarily would mean that the IRS would come down on them like a ton of bricks.

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.

Never mind that one of the things pushing people into default situations is the steady increase of taxes that saps the pocketbook. These folks are facing a standoff with the IRS, and the IRS has time on its side. With Treasury Secretary Tim Geithner in charge (he oversees the IRS), will we see a kinder, gentler, IRS? The IRS says yes:

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.

Somehow, I doubt that the IRS will give Joe Taxpayer the same breaks that they gave Charles Rangel or Tim Geithner or any of the other tax cheats who avoided paying their tax obligations in a timely fashion that were outed during the Obama nomination circus.