Reuters writes that the 2009 U.S. tax season promises a large increase in first-time delinquent income taxpayers. Keep in mind this is happening when many states (at least 12 confirmed) are planning on increasing sales and income taxes substantially along the increases the Obama administration is planning for this year.

“Our calls are up 280 percent,” said Richard Boggs, founder and chief executive of Los Angeles-based Nationwide Tax Relief, a firm that helps delinquent taxpayers resolve tax issues.

“We’ve seen a huge rise in what we call the rookie delinquent taxpayer,” he said. “They are incredibly scared, and they have no idea what’s going to happen to them because, God bless them, they’ve never owed before.”

“Many withdrew funds from 401k and IRA retirement savings accounts before the permitted time, unaware of the punitive taxes and penalties this would generate, said Larry Walker Jr, president of the financial and tax services firm 4-Serenity Inc in Snellville, Georgia.”

Fortunately, as the article explains, the IRS has vowed “to be available to work with” those who miss the deadline for paying their taxes a little. Just look at all the help this elderly Austin, TX resident received:

“An elderly woman in Austin, Texas, who asked not to be named, said her $3,000 debt to the IRS grew to around $60,000 in taxes and penalties over 16 years despite the fact that she paid off the initial debt within six months.”

“The 61-year-old is disabled and suffers from multiple health problems. The IRS now takes $133 each month from her Social Security disability check.”

The problems people are having paying their taxes is evidence of how ineffective increasing taxes during recession really is. Not only does it stall recovery by taking away much needed consumer spending power and “wealthy” capitol, but it is completely ineffective because people can’t (and won’t?) pay! As final evidence of how the upcoming tax increases (on the wealthy) will fair, just look at what is happening now:

“Not only are America’s wealthiest suffering the largest losses in nearly a century, but the IRS will be seizing what little resources they do have left in record time,” said Richard Boggs, founder and chief executive of Los Angeles-based Nationwide Tax Relief.

“Some of my rich clients are having big problems,” said Lance Wallach, CEO and president of Veba Plan LLC, a financial consultancy firm. “Hundreds of them do not have liquid cash to pay bills.”

The wealthy will have to free up cash (many by taking heavy losses on down market positions) to pay Uncle Sam. They will in turn have less cash available for investment into small businesses, venture capitol, or the stock market. All of this spells further trouble for our already hurting economy.