FEBRUARY 2012 IRS TO RELAXE RULES FOR PAYMENT AGREEMENTS
Early in 2012 the IRS decided to broaden their streamlined payment agreement program. In the past the IRS has allowed Taxpayers who owe less than $25,000 assessed to enter into a 60 month payment agreement with the IRS to resolve their tax liability without requiring full financial disclosure. The IRS has now increased the amount allowed in a streamlined agreement to $50,000 assessed. The IRS has also lengthened the allowable term to 72 months.
The IRS still will require basic financial information like where you work and bank but they will not make you complete a full financial.
What this means for Taxpayers with IRS Tax Debts. It’s now easier to resolve your liability than it ever has been provided you owe under $50,000 in assessed taxes and you can afford to pay this amount in full through monthly payments not to exceed 72 months or six years.
What if I cannot afford an IRS payment agreement? In this case you will need to review your other options such as the Offer in Compromise or Currently Not Collectible. There are always options you just can’t stick your head in the sand and wait till they levy your wages and bank accounts.
FEBRUARY 2012 IRS ANNOUNCES STREAMLINED TAX LIEN REMOVAL PROCESS
Provided you can afford the 72 month payment agreement to resolve the IRS tax debt and provided you are willing to have the payments debited directly out of your checking account every month the IRS will withdraw the tax lien they filed against you after 3 months of successful debits.
What this means for Taxpayers with Tax Debts and Liens. This means that all public record of the IRS tax lien filing is removed and if a tax lien has not been filed previously then none will be. This is why it’s important to move quickly. You want to avoid the tax lien filing at all or, in the very least, get the tax lien removed before the credit reporting bureaus catch it. It should be noted that this is an actual tax lien withdrawal as opposed to a tax lien release. The withdrawal removes all record of the tax lien filing whereas a tax lien release only shows the tax debt was paid or expired. In other words, a tax lien withdrawal is much better for the Taxpayer.
How does the IRS’s new Streamlined Tax Lien Removal process work. As discussed above, the IRS will not consider removal of a previously filed tax lien until 3 monthly payments are auto debited from your checking account. Once this occurs the IRS has created an appeal process that an experienced tax attorney can complete for you. From the point the appeal requesting the IRS withdraw its tax lien is filed it will take an additional 3-4 weeks before it’s officially withdrawn.
If you have any questions regarding whether you qualify for either of these new IRS programs please feel free to contact me via e-mail at john@cotaxattorney.com or by phone at 303-376-6267.