Editor:

A recent front page article in the city newspaper dealt with the IRS practice of accepting payment of less than 10 percent of money owed by seriously delinquent taxpayers and forgiving the balance owed.

For example, one taxpayer owed the IRS $1,045,000. She paid a settlement of $27,444, thus not paying the remaining $1,017,000. That was “forgiven.”

Now this seems to be a very fair way to deal with those who fail to pay taxes — if it is extended to all who get far behind in meeting their tax paying obligations.

Hypothetically, a person who owes $10,000 a year in taxes could avoid paying for10 years and then negotiate a settlement of less than $10,000 on the $100,000 owed [not counting interest and penalties, of course]. The process could be cumbersome though, involving accountants, tax attorneys, etc.

A much more efficient approach might be for that hypothetical taxpayer to submit a statement of intent to fail to pay taxes for 10 years, then simply pay 10 percent of the taxes owed each year. He could pay $1,000 per year on the $10,000 owed in each of those years.

It’s a win-win situation. The government does not have to wait 10 years to get its 10 percent settlement. It can receive the settlement in annual installments. It’s a simplified approach that cuts out tax attorneys, accountants and a great deal of paper shuffling.

The taxpayer would calculate his tax obligation and fill out the proper forms, the same as always, then staple a copy of his Intent to Default form to that document, calculate 10 percent of the amount owed and include a check for that amount.

Seems reasonable to me.

Paul Lawton

Springville