IRS Commissioner Doug Shulman announced 5 specific steps to offer leniency to taxpayers owing taxes.
- giving tax assistors greater authority to suspend collection actions in certain circumstances, such as a recent job loss, relying solely on Social Security benefits, or is facing steep, unexpected medical costs (tax debt is not extinguished, but collection activity will be deferred);
- taxpayers missing an installment agreement payment will not automatically have their agreement suspended (no guidance provided if more than 1 payment could be skipped);
- broadened eligibility for its “offer in compromise” program for some taxpayers who appear to have enough equity in their home to cover their tax debt. The IRS established a special unit to review specific cases;
- Taxpayers missing a payment under an existing offer-in-compromise agreement can work with IRS officials to avoid defaulting on that agreement; and
- The IRS will speed levy releases for taxpayers in financial hardship http://www.irs.gov/newsroom/article/0,,id=202244,00.html IRS offers expedited Lien Discharge and Subordination Process
The IRS announced an expedited lien discharge / subordination process for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home. The request should be mailed to one of 40 Collection Advisory Groups nationwide. See Publication 4235 for address information. IR-2008-141, Dec. 16, 2008. http://www.irs.gov/newsroom/article/0,,id=201343,00.html.