Tax Relief: Economy Softens Uncle Sam’s Heart of Stone
Posted by LWM Team on Wed, Apr 14, 2010
It was only a few weeks ago the IRS made it known an accelerated procedure was in motion to do away with tax liens to assist homeowners under financial pressure.
Now, the IRS is also prepared to assist those experiencing financial difficulty so they can pay their federal taxes.
It is important to note the IRS is doing what it can to help you pay taxes; it is not saying you don’t have to pay your taxes.
The IRS is softening their approach to taxpayers who always pay their taxes. Taxpayers who suddenly find it hard to pay due to the tough economic climate will receive a flexible attitude from the IRS. It has a five point plan to assist such taxpayers.
In circumstances of financial adversity the IRS has extra powers to postpone collection actions.
This applies to high medical bills, a job loss or reliance on social security.
If loss of employment or other financial misfortune causes an installment agreement payment to be missed the IRS will be less rigid. Normally, the IRS demands full and immediate settlement after one missed payment. Now, the IRS will consider lowering a monthly payment amount without routine suspension but only for permissible situations.
There are taxpayers with a compromise agreement or OIC and still can’t pay their tax due to financial hardship. The OIC means the tax payment is already lowered. However, the IRS will provide such taxpayers with choices to prevent them from failing to pay according to the compromise agreement.
Enough equity on property founded on the value of a home may not be eligible for an IRS sign-off on an OIC.
Real estate estimations to ascertain capability of payment may not be correct due to indecision in the housing market. An IRS panel is to review data to establish if an offer is correct.
Taxpayers experiencing financial adversity will have levy releases more speedily delivered by the IRS.
Taxpayers wanting to take advantage of the IRS’s softer approach must contact their local agency and request assistance.