Diary

New IRS Policy on Tax Liens

Exciting new policies for taxpayers who are about to get hit with tax liens or have already been hit with one.

  • The tax owed the IRS is now $10,000 instead of $5,000.
  • It will be a lot easier to get a lien removed. In fact, one may get it removed by getting a direct withdrawel agreement with the IRS, after a probationary period. (This makes so much sense one wonders why the IRS have not been doing this all along!)
  • Small businesses with $25,000 in unpaid taxes can now get an installment agreement over 24 months. Earlier threshold was $10,000. At least this is a step in the right direction. One still wonders why businesses cannot get agreements based on projected ability to pay.
  • On the Offers in Compromise front, taxpayers with incomes < $100,000 are eligible (versus < $50,000 earlier). Tax liability must be < $50,000 (versus < $25,000 before).

Many people may have just given up. They now have some hope of getting out of their tax debt.

More info from the IRS.


Masters of Finance Blog
http://cpafinance.blogspot.com/2011/03/new-irs-policies-on-tax-liens.html