17
Mar
11

IRS announces easing of tax collection practices

The Internal Revenue Service announced measures to be more lenient with taxpayers who can not pay their tax liability, in recognition of the financial crisis affecting the entire economy.

IRS Commissioner, Doug Shulman, announced five concrete steps that the IRS will use to be more flexible. He said he gave IRS personnel greater authority to suspend enforcement in certain circumstances, for example, when a taxpayer has recently lost a job, support is based solely on social security benefits or faces steep, unexpected medical bills.

Deferred Levies

In such cases, the tax liability is not eliminated or forgiven, but the collection activity, including the notices and phone calls, levies, liens and penalties, will be postponed, said IRS officials.

Second, taxpayers who fail to make a payment under a payment agreement with the IRS, the IRS will not automatically suspend the agreement.

It would allow taxpayers who are in economic trouble the ability to miss a payment. Missing more than one payment may compromise the installment agreement.

The IRS also expand eligibility for its “offer in compromise” program, taking into account certain taxpayers who appear to have enough equity in their homes to cover their tax burden. In the past, offers in compromise were not considered for those with equity in their homes.

Under an offer in compromise, a taxpayer can be resolved with the IRS for less than the total amount of taxes owed.

Special Unit

Mr. Shulman said he created a special unit to investigate cases where individual taxpayers with an equity  real estate may qualify for an offer in compromise.

In addition, taxpayers who do not receive a payment under an existing offer in compromise agreement to work with IRS officials to avoid any breach of this Agreement.

Finally, Mr. Shulman said the IRS to accelerate the payment of publications for taxpayers in financial difficulties.

Taxpayers who have difficulty meeting their obligations, should contact the IRS to take advantage of this new flexibility, said Shulman.

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1 Response to “IRS announces easing of tax collection practices”


  1. 1 Onthod
    March 20, 2011 at 4:19 pm

    This was one of the most interesting topics I ever read about.It was a great read,considering that I learned a lot of new things.


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