Due to the state of the economy and number of Americans struggling with tax debt, the IRS is taking steps to help taxpayers avoid tax liens and reverse existing ones.
The IRS plans to raise the amount of money owed necessary to receive a tax lien, as well as making it easier to get out of one. Even collection personnel can remove tax liens upon request, to make this process even faster. Once the taxpayer makes the payments owed, the tax lien can be filed for a withdrawal. These changes apply to individuals as well as small businesses.
Changes to Current Tax Law
Those with tax debt will now have the option to choose a Direct Debit Installment Agreement, which allows them to make the necessary payments to withdraw from tax liens, without creating a burden for other taxpayers. This way the IRS still receives what they are owed, allowing everyone to benefit.
Also, more small businesses will be able to receive Installment Agreements–small businesses owing less than $25,000 in unpaid taxes will be eligible for these agreements, instead of the current limit at $10,000 or less.
Furthermore, taxpayers with incomes of up to $100,000 are receiving assistance as well with the option of entering an Offer in Compromise program. The minimum requirement is less than $50,000 in unpaid tax debt, rather than the current threshold at $25,000.
Many factors are considered when determining whether a taxpayer can make necessary payments, but steps are being taken to help make this process easier for everyone. The economy is changing and so is the way the IRS deals with tax lien collection.
