The UK is testing the waters for their friends in D.C..
In the Budget, Chancellor George Osborne outlined plans for new powers to recover tax debts from anyone who owes more than £1,000.
Now HM Revenue and Customs (HMRC) has explained how the system will work.
An accountancy body which previously described the powers as “draconian” said limits to the rules were “robust”.
…..
The tax authority said that the average debt of those likely to be targeted was £5,800. It added that in a half of cases, debtors had more than £20,000 in their accounts.
The new powers would allow HMRC to seize money owed in tax, or owed as a result of tax credit overpayments. HMRC would be able to take the money from bank accounts, building society accounts, and Individual Savings Accounts (Isas).
I guess this is better than sending in 100 heavily armed operators to your ranch. Though I’m not sure how many times they could do this without getting the same response.
Of course, having discovered how much in back taxes is owed by federal employees, I think they should start there first.
Found @ Samizdata
IRS has been doing this for years.
I had a business once and we got behind in withholding deposits to the IRS. They came in a seized cash from checking account and used that money to settle the fines. We still owed the taxes, which could not be absolved by the courts.
Historically if you take this kind of case to the courts all fines and penalties are waived if you can meet the tax. However courts need lawyers and they cost money also.
Fastest way to kill a goose. We had to work from cash for a time as the bank just rolled over to the feds. So much for your money.