January 27, 2009; News 12 This Morning
Something is better than nothing. That's the idea behind some new IRS initiatives that are all about forgiveness.
The new rules are aimed to help taxpayers who are unable to make good on their tax debt, and they do this by strengthening an old program already in place. It's called Offer in Compromise, and it allows delinquent taxpayers to come up with a lump sum settlement on back taxes.
Financial experts say, in the past, it was pretty much a joke. You'd make an offer, and the IRS would deny it. Agents mostly assumed people were lying but not anymore.
Agents now say they'll consider all reasonable offers. They also promise to be a little more flexible when people who have fallen on hard times miss a payment. That includes stopping those phone calls and letters about back taxes, at least until you get back on your feet.
So, the advice here? Agents say don't ignore the problem. This is your chance to settle your debt, and they hope you take them up on it.