Due to the worst economic downturn the country has faced since the Great Depression, The Internal Revenue Service has recently announced that they are enacting new policies structured to help people in tax debt (a little late in my opinion but then again better late then never).
Highlights of the new polices:
Highlights of the new polices:
- When a taxpayer enters into a streamlined installment agreement the IRS will withdraw their federal tax lien. The IRS will also withdraw their federal tax lien if a taxpayer is currently participating in a regular Installment Agreement and later converts to a streamlined installment agreement though a direct debit installment agreement and requests a withdrawal of federal tax lien.
- Currently, small businesses with under $10,000 in unpaid back taxes are able to participate in the IRS's Installment Agreement program, which helps businesses pay their taxes over 24 months as a last ditch alternative to a lien. Under the new policy, small businesses will be able to participate as long as they have less than $25,000 in unpaid tax liabilities. Small businesses that are able to pay down a higher balance to less than $25,000 would also qualify for the program.
- Middle and lower class taxpayers struggling to make payments are a large population. To help them, the IRS has expanded their Offer In Compromise (OIC) program. Taxpayers with annual incomes of $100,000 or less and tax liabilities of $50,000 or less can participate in this program that allows the IRS and the taxpayer to come to an agreement that settles the tax liability for less than the full amount owed. Currently taxpayers can only participate if they have a tax liability of less than $25,000.