Election 2010 came and went yesterday. Yesterday saw a change in Washington as Republicans gained clout in Congress, winning control of the U.S. House of Representatives and gaining seats in the U.S. Senate. Most commonly known the party of lower taxes, Republicans these days scoff at the notion of raising taxes on individuals and businesses. But let’s take a look at how a more Republican Washington will impact our wallets.

Election 2010: Tax Increases Unlikely

All laws that relate to taxes must first be considered in the House of Representatives. Republicans now have control of the House, so it’s highly unlikely that the party of lower taxes would approve a law that would raise them. Republicans will probably also try and pass new laws related to taxes, including those that:

• Defund certain parts of the IRS, including hiring new agents.
• Make permanent the tax cuts passed under President George W. Bush.
• Lower corporate and personal income tax rates

But that’s not all. Republicans are also likely to seek changes in IRS policy for tax collection, such as more amnesty programs for those with back taxes, extended grace periods and reducing interest and penalties.

Election Lessons for You

When it comes to back-tax specific laws and regulations, we stay well read and our understanding is as thorough as possible. Over the next couple years, we’ll be keeping an eye on Washington to see what gets passed. And naturally, we’ll always see how it can help you resolve your tax debt with the IRS.