New For 2009 – A Kinder, Gentler IRS
In 2009 the IRS developed new policies to benefit struggling tax payers meet their tax obligations. These benefits are not automatic -- you must communicate your financial hardship with the IRS. If you are having trouble paying business or personal taxes avoiding the IRS will not help you.IRS employees now have greater discretion and more flexibility in exercising options when working with tax payers including making payment adjustments for back taxes owed. In response to difficult economic times the IRS is now trying to assist more tax payers in crisis to keep them out of collections. But in order to get leniency you must contact the IRS if you are having trouble paying your taxes.
The IRS still wants to collect taxes from you but if you can claim financial hardship you may find the IRS more receptive to alternative solutions than it has been in the past.
Reasons for Financial Hardship
You may be able to get help from the IRS if you meet any of the following conditions for “financial hardship:”- Have lost your job;
- Are dependent on Welfare or Social Security;
- Have excessively high medical bills; or
- Are facing a devastating illness.
