The IRS seems to be making it easier for taxpayers who owe the IRS for past due taxes to resolve their tax issues. There have been numerous posts indicating that the IRS is:
Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens. This amount has been updated to adjust for inflation.
Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. Liens will be able to be withdrawn once the bill is paid in full, and streamlined internal IRS procedures will enable collections employees to withdraw the liens.
Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
Open streamlined Installment Agreements to small businesses with $25,000 or less in unpaid tax, including those that file as individuals. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less. Small businesses need to enroll in a Direct Debit Installment Agreement to participate.
Expanding a streamlined Offer in Compromise program to cover taxpayers with annual incomes up to $100,000 and tax liability of less than $50,000.
“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” IRS Commissioner Doug Shulman said. “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”
This relaxing of financial standards should result in it being easier for tax professionals to resolve their clients tax problems.