The Internal Revenue Service (IRS) announced that it's going easier on people who haven't paid their federal taxes.
IRS Commissioner Doug Shulman said the service is making five changes to its lien system and collection tools that will help people with tax debts "get a fresh start." Here are the changes:
Tax Liens Withdrawn
Today, after a tax debt is paid, the IRS releases a tax lien. "At that point we no longer have a claim to any asset that the tax lien is attached to," Shulman said.
An unpaid tax lien remains on a credit report for 10 years. If the tax is paid, and the tax lien is released, the evidence will remain on the credit report for seven years from the paid date. However, if the lien is withdrawn, "we will remove it from the credit report."
Of all the things that are bad on a credit report, one of the worst is a Federal tax lien. The ability to have the atx lien withdrawn is a fantastic incentive for consumers to find a way to pay their tax bills.
The IRS will withdraw the lien after a "probationary period" demonstrating that direct debit payments will be honored.
Small Business Installment Agreements
Expanded Offer in Compromise (OIC)
Asked if these new measures will increase or decrease tax collections, Shulman said they will "probably be neutral for revenue collection," although the expanded offer in compromise programs could bring some money in the door.
• Experienced Tax Attorneys
• Lower fees, Higher Value and Personal Service
• Integrity, No Complaints and Credibility always
• IRS Wage Levy Release in 1 Day/24 Hours
FLAT FEE TAX RELIEF SERVICE FEES ARE:
• Fixed with no hidden charges - Low initial retainer
• Payable in monthly installments
• Low initial payment to begin work
• Always affordable, flexible & no salesmen commissions
1. You can pay your tax liability off in full.
2. If you cannot pay your tax debt off in full, you can enter into an IRS Installment Agreement / payment plan. Should you attempt to do this yourself, you may agree to a monthly payment that is much higher than what you should be paying.
3. Stop the Levy and begin the process of an IRS settlement through the IRS Offer in Compromise. Not everyone is eligible and qualified for an Offer in Compromise but you will not know if you can settle with the IRS for less unless you have a complete consultation with an experienced, diligent tax attorrney.
4. Stop the Levy and be declared Currently not Collectible (CNC) which is sometines called Currently Uncollectible. When your allowable expenses (according to the IRS formula) exceeds your current income and ability to pay your tax liability, you may be declared by the IRS to be Currently not Collectible and for a period of 18 to 24 months, you will not pay the IRS anything. During the Currently not Collectible period, the Statute of Limitations continues to run out and the IRS will leave you alone. At the end of the 18 to 24 month period, you will need to show the IRS your present financials (433-F), bank statements, pay stubs, etc. and if nothing has changed, you will continue to be classified as Currently not Collectible (CNC).
6. You will be better off if you have an experienced tax attorney handle these matters for you. You do not know the IRS Code or IRS Manual. You do not have any in depth experience with the collections division of the IRS and you, most likely, will make crucial errors and harm yourself.