Times are tough, many are unemployed or underemployed. With the unemployment rate climbing and not much relief in sight, the IRS has decided to go a little easier on some taxpayers. Don’t get too happy, you aren’t off the hook and the penalty and interest clocks will continue to click. But the IRS recently gave its collection people the authority to suspend collection activity on taxpayers who are in financial distress. If you request such a suspension, you’ll be interviewed by a collection agent. If he or she determines that you are not able to pay your tax debt they may suspend collection activity until your financial condition improves. All this means is that they will not hound you and probably will not try to seize your assets to settle the tax. You should be aware that they can and probably will still file a Federal tax lien against your assets. This will prevent you from selling any assets, including your home, without paying Uncle Sam first, or possibly from the proceeds. When your financial picture changes for the better you’ll be expected to come to settlement terms to pay your IRS debt.
It’s good to know that also have a heart for understanding the financial crisis that a lot of the people are experiencing. Thank you for sharing this very informative article.