As reported by WIS TV, the IRS is now more willing to negotiate a tax settlement for less than you owe. Acknowledging the effect that the recession has had upon Americans nationwide, the IRS is allowing IRS agents more flexibility to work with taxpayers who have seen their incomes recently drop.
IRS Commissioner Doug Shulman announced earlier this week that the agency is loosening its rules for negotiating tax settlements and accepting less than the amount owed.
Beginning on March 27, 2010, the agency plans to start opening some local offices on Saturdays, to give taxpayers more opportunities to resolve their tax debts.
The IRS expects to process 138 million individual tax returns this year. While most taxpayers will qualify for a refund, with the drastic job loss that has accompanied the recession, many taxpayers will be unable to make timely payments.
Common IRS Settlement Options
Offer in Compromise: The IRS does not want you to know that as a tax payer you may be able to settle your outstanding tax liability for less the actual amount owed.
Non-Collectable Status: If you do not have the extra income to pay off your tax debt and need your entire paycheck to cover all essential living expenses, you may be eligible to have your debt classified on non-collectable status.
Installment Agreement: The taxpayer enters into an agreement with the IRS to pay a period of smaller, more manageable payments towards his or her tax liability.
Levy and Lien Releases: The IRS has a tremendous amount of power and can seize your assets, including your paycheck as well as money that you have in your personal bank account.
Penalty Abatement: If you owe the IRS, you can be forced to pay interest and penalties on the amount owed. Penalties can be staggering and turn an otherwise manageable debt into an uncontrollable situation.
Don’t wait while the interest and penalties you owe to the IRS continue to mount. Contact the tax attorney at the Strom Law Firm, LLC today for a free consultation to discuss how we can help you put your IRS tax debt behind you. Our lawyers proudly edit the Columbia, South Carolina Injury Board as well as the Strom Law Blog as a pro bono effort to provide the public valuable information. Our lawyers are licensed in: South Carolina, New York, and Georgia.