IRS to cut struggling taxpayers a break

[OhioChick]

Source: Columbus Dispatch

Wednesday, January 7, 2009 3:03 AM

Taxpayers could encounter a kinder, gentler Internal Revenue Service this tax season.

IRS employees have been instructed to be more flexible and understanding with taxpayers this year, Commissioner Douglas Shulman said during a conference call yesterday.

"This is clearly a difficult economic time for the country," Shulman said. "This is a time where government leaders need to be mindful of the challenges citizens are facing."

That directive will be played out in specific ways. Many of the changes focus on people who owe back taxes and are struggling to make payments.

In the past, taxpayers who paid back taxes through an installment plan were considered to have defaulted if they missed a payment. That's not necessarily the case this year.

Now, IRS workers have greater authority to suspend collections when the taxpayer has lost his or her job or faces significant medical bills.

"Our people have been instructed to work with taxpayers and understand their individual circumstances," Shulman said.

In another scenario, those owing taxes but who have equity in their homes might get a break.

A new unit has been created to review so-called offers in compromise, which allow a taxpayer to settle a debt with the IRS for less than the full amount owed.



Read more: http://www.dispatch.com/live/content/business/stories/2009/01/07/IRS_changes.ART_ART_01-07-09_C8_OACENJG.html?sid=101

[bluestateguy]

1. There should be no audits of anyone who makes under $100,000

Unless there is credible evidence of fraud or evasion. Otherwise, audits should be reserved for the rich and corporations.

[Roland99]

2. Hmm...I should give them a call

I'm losing my job after Jan. 30. Wonder if I can get my agreement put on hold for a bit. I have some possibilities (one rather strong) but nothing is guaranteed.

[DollyM]

3. We had to cash in our retirement to get by as well as having unemployment to pay taxes on . . .

I am scared to death to think of how much taxes and penalties are going to be. We still don't have jobs, I don't know where we are going to come up with the money to pay it. Last year I put it on a credit card, will probably have to do the same this year while the cc interest goes up and up until we can't pay that anymore. What a mess! I think they need to suspend penalties on cashing in retirement when you can show that you have lost a job and have been unemployed most of the year.

[AnneD]

4. What.....

Instead of asking for 4 pints of blood they will only demand 31/2 ??????