|
Video
Owe Taxes But Can't Pay? English
Unemployment
Compensation: English
| Spanish
Job
Search Expenses: English
| Spanish
| ASL
For
these and other videos: YouTube/IRSVideos
IR-2010-29, March 9, 2010
WASHINGTON -- The Internal Revenue Service today announced several additional
steps it is taking this tax season to help people having difficulties meeting
their tax obligations because of unemployment or other financial problems.
The steps –– an expansion of efforts that began more than a year ago ––
include additional flexibility on offers in compromise for struggling taxpayers,
a series of Saturday “open houses” offering taxpayers extra opportunities to
work out tax problems face to face with the IRS, special outreach with partner
groups to unemployed taxpayers and the availability of more information on a
special section of the IRS Web site.
“Times are tough for many people, and the IRS wants to do everything it can
to help people who have lost their job or face financial strain,” IRS
Commissioner Doug Shulman said. “We continue to make adjustments to key programs
and expand ways for people to get help. We’re doing everything we can to help
ease the burden on struggling taxpayers.”
New Flexibility for Offers in Compromise
For some taxpayers, an offer in compromise –– an agreement between a taxpayer
and the IRS that settles the taxpayer’s debt for less than the full amount owed
–– continues to be a viable option. IRS employees will now have additional
flexibility when considering offers in compromise from taxpayers facing economic
troubles, including the recently unemployed.
Specifically, IRS employees will be permitted to consider a taxpayer’s
current income and potential for future income when negotiating an offer in
compromise. Normally, the standard practice is to judge an offer amount on a
taxpayer’s earnings in prior years. This new step provides greater flexibility
when considering offers in compromise from the unemployed. The IRS may also
require that a taxpayer entering into such an offer in compromise agree to pay
more if the taxpayer’s financial situation improves significantly.
These immediate steps are part of an on-going effort by the IRS to ensure the
availability of the Offer in Compromise program for taxpayers.
Hundreds of Saturday Open Houses to Resolve Taxpayer
Issues
In addition, IRS will hold hundreds of special Saturday open houses to give
struggling taxpayers more opportunity to work directly with IRS employees to
resolve issues. The offices will be open on March 27 and three additional
Saturdays in the spring and early summer. Dates, times and locations will be
announced shortly.
During the expanded Saturday hours, taxpayers will be able to address
economic hardship issues they may be facing or get help claiming any of the
special tax breaks in last year’s American Recovery and Reinvestment Act,
including the:
- Homebuyer tax credit
- American Opportunity Credit
- Making Work Pay credit
- Expanded Earned Income Tax Credit
In addition to these special Saturdays, taxpayers can take advantage of
toll-free telephone assistance and regularly scheduled hours at local Taxpayer
Assistance Centers. Taxpayers can find the location, telephone number and
business hours of the nearest assistance center by visiting the Contact My Local
Office page on IRS.gov.
Special Outreach Efforts to Unemployed
The IRS is working and coordinating with state departments of revenue and
state workforce agencies to help taxpayers who are having problems meeting their
tax liabilities because of unemployment or other financial problems.
These coordinated efforts may include opportunities for taxpayers to make
payment arrangements and resolve both federal and state tax issues in one
place.
Special Section of IRS.gov Created
Taxpayers who are unemployed or struggling financially can find information
on a new page on the IRS Web
site, IRS.gov. This online tax center has numerous resources including links
to information on tax assistance and relief to help struggling taxpayers
Other Options Available for Taxpayers
The IRS will continue to offer other help to taxpayers, including:
- Assistance of the Taxpayer Advocate
Service for those taxpayers experiencing particular hardship navigating the
IRS.
- Postponement of collection actions in certain hardship cases.
- Added flexibility for missed payments on installment agreements and offers
in compromise for previously compliant individuals having difficulty paying.
- Additional review of home values for offers in compromise in cases where
real-estate valuations may not be accurate.
- Accelerated levy releases for taxpayers facing economic hardship.
In addition, the IRS will accelerate lien relief for homeowners if a taxpayer
cannot refinance or sell a home because of a tax lien. As previously announced,
a taxpayer seeking to refinance or sell a home may request the IRS make a tax
lien secondary to the lien by the lending institution that is refinancing or
restructuring a loan. The taxpayer may also request the IRS discharge its claim
if the home is being sold for less than the amount of the mortgage lien under
certain circumstances.
Subscribe to
IRS Newswire |
