The Dwyer Law Firm would like to congratulate Lee Stringham and everyone else who discovered today that they passed the July 2010 bar exam here in New Mexico.

For some, the news marks the end of a three year journey; for others, the trek was more like eight years. For all, it’s an accomplishment worth celebrating.

As is the case for those individuals who will be taking an oath as attorneys on September 20, there will be a number of changes for the Dwyer Law Firm in the coming weeks.

Once again, congratulations for a job well done, Lee!

In her report to Congress, the National Taxpayer Advocate Nina Olson expressed her concern about requiring businesses to submit an IRS Form 1099 to every entity that receives more than $600 per year for goods or services.

As explained in a previous post, beginning on January 1, 2012, the healthcare overhaul signed into law by President Obama made a number of changes to the tax laws.

According to the NTA report, the new 1099 reporting requirement “would apply to businesses of all sizes, charities and other tax-exempt organizations, and government entities,” including:

• 26 million non-farm sole proprietorships;
• 4 million S corporations;
• 2 million C corporations;
• 3 million partnerships;
• 2 million farming businesses;
• 1 million charities and other tax-exempt organizations; and
• probably more than 100,000 federal, state, and local government entities.

Unfortunately, as the IRS website notes, the report of the National Taxpayer Advocate states that the 1099 reporting burdens “may turn out to be disproportionate as compared with any resulting improvement in tax compliance.”

If, after considering all the reasons not to do so, you decide to call the IRS, please be patient.

According to a summary of National Taxpayer Advocate report to Congress, the IRS is not answering its phone as often as it used to.

In fiscal year 2008, the IRS only answered 53% of its calls from taxpayers seeking assistance. Back in fiscal year 2004, the answer rate hit its peak at 87%. The goal for the current fiscal year is 71%.

While you are waiting patiently, try to enjoy the music.

As the Wall Street Journal mentioned here over the weekend, things at the IRS aren’t going so well according to the National Taxpayer Advocate (NTA), Nina Olson. In the most recent NTA’s report to Congress, Ms. Olson noted that Congress has taxed the IRS with duties that include “delivering social benefits and programs to the American public,” such as administering the variety of tax credits available for federally-approved status or behavior.

The most onerous of these duties have yet to take effect and Ms. Olson doesn’t like what she sees.

According to the summary, the NTA report “expresses concern that the IRS currently is neither structured nor funded to … effectively” deliver social programs. This is especially bad news considering that President Obama’s healthcare overhaul is “the most extensive social benefit program the IRS has been asked to implement in recent history.”

Apparently, enforcing the Obama Administration’s new healthcare tax will “involve nearly every division and function of the IRS,” according to Ms. Olson.

As one might have guessed, the NTA report indicates that the IRS will need more funding in order to carry out its new responsibilities.