advertisement
Looking for something on the site? Search for it here! Also see Clark's Greatest Hits

Jan 26, 2009 -- New kinder, gentler IRS policies

Owing money to the IRS can be one of the most uncomfortable things in the world. But now, in a surprise move, IRS Commissioner Doug Shulman has announced new initiatives aimed to help taxpayers who are unable to make good on their tax debt because of financial hardship.

The new rules will strengthen an old program called Offer in Compromise. The OIC program -- designed to allow delinquent taxpayers to negotiate a lump-sum settlement -- was something of a joke in the past. Most offers were flat-out denied because the IRS assumed people were lying. But now reasonable offers in compromise will be considered.

Here are some of the other new "kinder, gentler" IRS initiatives Shulman is instituting, courtesy of a recent USA TODAY article:

• Help more taxpayers with homes that have declined in value qualify for an OIC.
• Provide more flexibility when an installment payment is missed.
• A halt to phone calls and letters regarding back taxes.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

Avg. rating: N/A

What others are saying

  • how to contact the IRS field agent
    Clark mentioned about information on contacting an IRS field agent to settle/discuss your back taxes. I don't see the link/information. Can anyone help/point out for me. thanks
  • IRS Wants Money From year before last
    The IRS says I Now owe them $6000 plus $1900 from 2008. They admit it take time to check all Tax Returns. I have have always paid my taxes. Do they bluf you into paying taxes?
  • Offer in Compromise
    I was so please to hear Clark warn a caller and all of his listeners about scammers promising to resolve tax debts for pennies on the dollar. I cheered out load in modest little tax preparer’s office that perhaps the gig is up on these scammers. I client, within a day or two of the broadcast e-mailed me and asked me about “These companies” that can make the IRS go away.
    I was disappointed that I could not find some CH wisdom on Clark Howard’s website admonishing these (I think Clark called them) Chugs. I was amazed to find 5 of these possible racketeers advertising there!
  • Sorry for the misspellings!
    Sorry for the misspellings! I get all worked up on this subject.
  • In Debt
    I totally understand paying your taxes. I always did and then I made an investment that turned out to be a scam. The leader ended up dying in prison for scamming 2000 people and now we have IRS debt to pay. Get this...back taxes of 12,000 turn into 100,000 and I have no way of paying it off. The IRS will only allow me to have $700 a month. No offer or compromise...no bankruptcy..I wasn't trying to scam anyone only trying to save for retirement and I ended up being frauded and now owe the IRS money for the rest of my life..oh.. and since no one of "importance" was involved no cares! I would be happy to pay the back tax portion...its the interest and penalties that are kidding me and forget about only keeping your taxes for 7 years. That's a lie... it took them 15 years to decide we owe them money!
  • Audit
    I really don't like some of these comments on here. I have been unemployed and underemployed for four years. I can't get a job out there. I have been struggling to get by and then I got money from an uncle's estate. The bank misled me on the money I received and led me to believe that it was not from an IRA account. IRS is now auditing me. I thought that the tax was paid by the bank, when the bank closed his IRA and dispersed it to me. I paid the bank interest on what I received. Now I owe $20,000 plus penalties etc. to the IRS. I don't even make that in a year. Some times people have tragedies happen. Stop judging people!!
  • back taxes
    I am still trying to figure out how another state is claiming i owe them back taxes when i wasn't even living in the state!!
  • soving issues with IRS
    We have paid the IRS our taxes for 2007 and they don't recognize about $2000 of it. We have sent certified mail with copies of the cancelled checks and they now say they are going to put a levy against us. I can never get through when I try to call.
  • I TRY to pay my taxes
    In response to lambmit, I would never intentionally NOT pay my taxes but had a job where taxes were not taken out and lost my job, got divorced, and am struggling to make ends meet. Please don't judge everyone and their deserved punishment before you walk a mile in their shoes.
  • I pay my taxes
    I pay my taxes. I don't think people who don't or can't should get any consideration. If the people don't set aside a part of their income for taxes that they know that is due then they need to pay the price with either pennalties or jail time.
  • IRS Policies
    Most Americans pay their taxes. The IRS is an agency that abuses its powers in regards to the way it acts towards taxpayers. If local police treated citizens this way, they would be under investigation immediately. The IRS should be scrapped. Now is a good time to replace the IRS, and the tax system, with one that works well. The economy would definitely get a positive boost with a streamlined organization and a much simpler tax code.
  • IRS Policies
    I believe the recent IRS news is just a public relations campaign to help cover up all the complaints people are making about the abusive way the IRS treats tax payers. The IRS should be replaced with an organization that works for Americans.
  • Gentler IRS
    I agree with hurtin. I have gone to two layoffs in 3 years. I am making 50% less. I had to make tough decisions to make things work,including taking cash out of my retirement acccount to keep my home. When you try to keep health insurance for a family when you are without a job is costly. (Thanks Cobra) But due to the withdrawal, I have a huge tax bill with 50% less money. I am trying to sell my house and nothing. On the market for over a year. I feel like I am drowning it all of it. The IRS need to be gentler for those who have been responsible but have been affected in a negative way by the economy. Until you walk in someone shoes who is suffering in this economy, don't think that everyone is a loser. Everyone is working on a tight budget. If they were not, stores, dealerships, airlines, would be making money not closing.
  • Hard times
    Number one I think the IRS changes are more for business owners than individuals. For all thoughs who are still doing well in this economy! Many families that are use to one person working 60 hours plus a week have no work! Which means those who want to work can't and are hurting! Some of the other comments make me realize that many people don't know how bad many families are hurting in this economy. Anyway- We've always claimed single or married and paid in lots and got back a little. And that was fine! But 2 years ago my spouse started a business, hired a trusted relative as the office manager and the rest is history-long story short the employee didn't pay payroll taxes for over 7 months before we found out. NO JOKE with in 5 minutes of discovering the cover up we contacted the IRS, and they were no help! We owed more than we had and wanted to make it right immediatly, but 10 months later, still no field agent and lots of crap including liens etc. Finally contacted the tax payer advocate program and was assigned a field agent in less than 3 weeks and with in a month we had a settlement and a number and payment plan. After I told the agent how we contacted immediatly and the lack of response from the IRS yet the system went after us with both feet and we couldn't get any help. Off the record the agent basicly told us we were one of thousands in their 5 county area and the system is overloaded! Which I already had figured, but it sucks when your trying to fix something and you can't get any help. Don't get me wrong I don't like anyone in america not paying their fair share! The main thing I'm trying to get across with this comment is, like us they're some people that are honest and have never done anything wrong and just want to fix and make it right! I think the IRS is doing this because they probaly have more cases than they've ever had. And most have probaly lost their business due to the economy and will never be able to pay what they owe. So with out the changes the system will be beyond over load and good people will be put through unnecessary crap! I highly recommend if your waiting on a field agent to be assigned contact the taxpayer advocate program-our CPA put us in contact with them. I promise waiting will only cause more problems!
  • Kinder, Gentler IRS Policies
    I'm glad to learn of the new policies. I've always lived within my means and paid my taxes on time, but I don't want to see others suffer, even if they lived above their means. I'm sure they've learned from their mistakes without also having the IRS on their backs too, and it doesn't do me or anyone else any good for those people to have to suffer more by harsh IRS policies. Good for the IRS!
  • Infernal Revenue Service
    Now that we have a tax cheat running the IRS sideshow, it is about time!
  • IRS Rules
    I, like many people, have had most of my retirement stolen. I work for myself and have to pay double social security; money that probably will not be available to me. I pay my bills on time every month, and taxes, and have little left over to save, because I make a lot less money than I used to. We have always lived below our means. I am sick and tired of the people who bought more than they could afford or who do not know how to budget their money getting all of the breaks. Yet again a government program that encourages doing the least to get the most.
  • irresponsible
    Just another case of the government rewarding failure and irresponsibility. First the bailouts, now this....i wonder if i run up my credit cards, get my house into foreclosure and refuse to pay my taxes if I can get a bailout?...time to open that swiss account and play poor and dumb to get my slice of the handout....when they ask me where the money went that i sent to the swiss account, I will say i gambled it in vegas. It seems our government likes rewarding losers.
  • IRS Tax payments
    No way! Like most hardworking Americans, I always pay my taxes. I budget, stick to it, and pay all of my bills. This just encourages more people to not pay, and get by with it. Shame on the IRS for not making them pay.
  • Kinder Gentler IRS!
    The pendulum swings again!
    One year the OIC is a good idea the next it is a bad idea. A few years ago several payroll companies defrauded their customers, did not send the taxes to the IRS, but IRS demanded the money from the defrauded customers who ended up paying the money TWICE! (google FirstPay). NO Offer for them! Now the deadbeats get a break again! It's wrong. Only the bad guys get rewarded.
  • not fair
    not fair for those of use who budget, pay our taxes on time, WORK, and file early...it is very dangerous, others will start not to pay also.
  • Kinder, gentler IRS
    It seems , people that do the right thing, never get rewarded, maybe they should get a discount for filing and paying early or on time, thats an idea.
  • Offer in Compromise
    Not that this matters one iota...but my husband wrote the computer code behind the Offer in Compromise program. It was his shining accomplishment. He died 2-1/2 years ago. Funny to see it mentioned here. He was also a Clark Howard listener.
  • Taxes
    Sounds like the Fair Tax is starting to get someones attention, those who might deserve being in the unemployment line.
  • Kinder, gentler IRS?
    Why should someone who fails to budget properly and set aside what they are going to need get a discount from the IRS? How about the people that pay in full and on time? Why don't they deserve a reward? I guess if I want to pay less taxes I'll have to not pay my taxes for a few years and then ask for a discount. Thanks for telling me how the system really works.
send to a friend  view as printer-friendly  RSS feeds
advertisement
Sponsored by: Atlanta Mercedes
 
advertisement
THIS WEEK'S POLL
advertisement