Wednesday, March 10, 2010

The IRS and tax time

It appears that the IRS is showing some compassion, if the IRS could have compassion, towards the millions of people who have a tax bill and are unemployed or underemployed.

IRS Commissioner Doug Shulman says that the agency will loosen it's rules for negotiating tax settlements. One thousand more offices will be open as of March 27, to help taxpayers through the system. Taxpayers will have to show that they are unable to pay, but whatever you do, don't not file a return as the rules change and the taxpayer is not eligible for the program.

Local Aid.. maybe cut by 5%

In a closed door session at the State House, leaders are bracing their flock for a 5% reduction in local aid. This chapter 70 funding which in January was 4 billion is now projected to be 3.8 billion. The GOP has offered a local aid resolution to level fund Chapter 70 funding, but was ignored by House Speaker DeLeo. Sounds like a lot of money, but rest assured, if the cuts are in place, our Town will be forced to reduce expenses.

Our Town CFO Ms. Kelly has asked for budget cuts of 4 and 8%. Look for some serious layoffs without an override this coming fiscal year. 80% of our town budget comes from local taxes and the rest comes from the state and various other receipts.