IRS Concessions

The IRS appears to be doing a major public relations revamp in order to soften its image and turn around its bad reputation. It is doing this by making several concessions on taxes which make them more user-friendly and less likely for taxpayers to find themselves in arrears.

New IRS Change Benefits

Tax liens are filed by the IRS when there are unpaid property taxes. These liens are filed automatically when the past due tax reaches $5,000 or more, but the IRS will be raising this limit to a more lenient $10,000. It will also be treating each case individually, instead of allowing its system to penalize delinquent taxpayers automatically. This benefits taxpayers in the long run, as well, since tax liens—like so many financial penalties—stay on a credit report for seven years. Even this may be mitigated by the IRS’ plan to institute another concession—to withdraw tax liens after the debt has been repaid.

Offer in Compromise Expansion

Sounding much like a creditor trying to collect a past due debt, the agency will cover more indebted taxpayers by the expansion of the offer-in-compromise program. Those with incomes of up to $100,000, who owe up to half that amount in tax debt, may be able to negotiate with the IRS for a tax liability of less than what they owe.

These “good faith” concessions are still in the planning stages, but should prove to make a huge difference not only in taxpayers’ financial lives, but in their view of the ‘Big Bad’ IRS, as well.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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