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The Internal Revenue Service and authorized tax preparers should offer financial counseling to tax payers during income tax filing periods, and work with credit reporting agencies like Equifax, etc. to exemplify to tax payers outstanding balances on their debts, and how any delinquencies and/or other negative reports may be adversely affecting their credit ratings or scores…

The IRS and/or said authorized tax preparers should be capable of applying payment on the spot directly to creditors upon each relevant tax payer’s authorization, though authorization may not be required on uncontested delinquent debt up to no more than half of an individual’s refund, or less than half if the individual must apply any costs towards their healthcare…

This would provide an incentive for said individuals to make and keep satisfactory payment arrangements, which would result in ultimate payout, or to make at least minimum payments on their bills throughout the year before paying balances in full on either or all of their bills during tax filing seasons.

Financial counseling by the IRS and authorized tax preparers could also consist of demonstration of the benefits (reduction in principal balances and interest, and early payouts) of making an extra payment or payments on a mortgage, car note, et cetera, et cetera, and the IRS and authorized tax preparers should be enabled to make or directly apply payment to those particular creditors…

Production of credit reports should become a component of the income tax filing process. Optionally, unsolicited copies of credit reports could be mailed to individuals with outstanding delinquent or negatively reported debt in either December or early January of each year so that said individuals can review and dispute/correct any inaccurate information before filing their taxes…

The Internal Revenue Service and other authorized tax preparer software should be tweaked to include direct access to each tax payer’s credit report and to enable preparers to apply payments to creditors, and acknowledge those payments in each individual’s tax documents.

Paid creditors could also optionally be required to mail receipts to each relevant individual, or each individual could request receipts or payment confirmation from those paid creditors.

The Internal Revenue Service and authorized income tax preparers offering financial counseling to tax payers and working with credit reporting agencies and tax payers to eliminate debt would demonstrate prudence on behalf of the government, and would help to wipe out individual and national debt, once Uncle Sam acquires his fair share…

The prescribed would also improve credit ratings for especially the significant sect of the populace who qualifies for and receives Earned Income Credit during income tax filing seasons, and open doors for said individuals to receive credit and loans with lower interest rates, and from sources to which they wouldn’t ordinarily be privileged…

 

 

 

 

 

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