Get a Clean Slate with the IRS and an Offer in Compromise to Lower Your Tax Debt

The Internal Revenue Service (IRS) has unveiled several new measures aimed at assisting taxpayers in financial distress.

Facilitating the fulfillment of tax duties by individuals and smaller enterprises without imposing undue hardship on those who pay taxes is the primary objective of the fresh start program IRS. The Internal Revenue Service (IRS) has announced new regulations and initiatives designed to assist people in settling their debt and staying clear of tax liens.

To benefit taxpayers and provide a clean slate, IRS Commissioner Doug Shulman has announced major modifications to the agency’s lien system and other collection tools. These measures are a sign of fiscal responsibility and will help those who are now experiencing hard circumstances.

The IRS is updating its lien filing procedures in a way that will have less of an adverse effect on taxpayers, as detailed in today’s statement. Among the alterations are:

Tax liens would be reduced if the threshold at which they are issued was significantly increased. Facilitating the process of obtaining a lien withdrawal after the payment of tax liability.

When a taxpayer joins into a Direct Debit Installment Agreement, liens are often released. Making it simpler for financially-strapped small enterprises to sign up for payment plans. The number of taxpayers who may take advantage of a simplified offer in a compromise program is growing.

Both individuals and the tax system will benefit from these measures, Shulman added. As a result, “people will have a greater opportunity to keep their tax payments up to date and their financial lives in order. If that occurs, it will be to our collective advantage.

An additional measure to aid financially-strapped taxpayers. In 2008, the Internal Revenue Service provided a reprieve from liens when a taxpayer was attempting to sell or refinance a house. New options for taxpayers with payment or collection issues were introduced in 2009 by the Internal Revenue Service. Over the year, the Internal Revenue Service hosted over a thousand special open houses to assist individuals and small companies in resolving tax difficulties with the Agency.

This statement was made today after Shulman completed a yearlong evaluation of collection procedures with feedback from the IRS Advisory Council and the National Taxpayer Advocate.