If You Owe Taxes There Is Some Relief

In February of this year IRS made major changes to its practice of filing tax liens. These changes include:


  • Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
  • Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
  • Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
  • Creating easier access to Installment Agreements for more struggling small businesses.
  • Expanding a streamlined Offer in Compromise to cover more taxpayers.
When IRS files a tax lien it notifies the public that the taxpayer's property can be used to satisfy a tax debt. This adversely affects a person's credit making it harder to get a loan to pay off the debt. To help taxpayers IRS has raised the lien threshold to 25,000. Also, IRS will allow Installment Agreements on amounts owed under 25,000 without submitting a financial statement but a lien may be filed. In order to not have a lien filed or to have it withdrawn the taxpayer must have a Direct Debit Installment Agreement.

Installment Agreements and Small Businesses

IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate. If the tax debt is 25,000 or less the small business can use the streamline Installment Agreement and can have up to 24 months to pay.

Offer in compromise

An Offer in Compromise is an agreement between a taxpayer and IRS that settles the taxpayer's tax liabilities for less than the full amount owed.

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined OIC is being expanded to allow taxpayers with annual incomes up to 100,000 to participate. In addition, participants must have a tax liability of less than 50,000.

Comments

  1. TaxseerNovember 1, 2019 at 11:52 PM

    Thanks again for all the great information…I am grateful! 1099 C Form Online. You can clearly explain about it.

    ReplyDelete

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