Skip to content

IRS Decides To Be More Lenient?

February 25, 2011

Gunwel Tax & Bookkeeping’s pledge to you is to keep you updated on all important tax matters that may affect you. Today we received notice that the IRS announced that it will be significantly reducing the number of liens it will place on property owned by delinquent tax payers and will make it easier for taxpayers to get existing liens withdrawn.

The use of tax liens has soared more than 60% since the start of the recession and tax payer advocates have asked the IRS to moderate the use of this collection tool, which can make it difficult for an individual to find a job, obtain affordable housing or buy insurance. IRS Commissioner Doug Shulman said the IRS will impose a lien when a taxpayer owes back taxes of $10,000, up from the previous threshold of $5,000. As a result of the higher threshold, tens of thousands of people won’t be burdened by liens. In addition, taxpayers who set up an installment plan to pay back taxes will usually be able to have their liens withdrawn.

A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. A tax lien can devastate a taxpayer’s credit score and make it difficult for the individual to sell a home or other property that has a lien against it. The tax payer advocate’s office called the announcement “a significant step in the right direction.”  The IRS also announced that it has broadened its Offer in Compromise program, which allows taxpayers to negotiate a reduction in the amount of taxes they owe. The Commissioner said taxpayers with annual incomes of up to $100,000 can participate in the program, up from the previous cut-off of $50,000. Only a small percentage of Offers in Compromise filed with the IRS are accepted. To obtain a permanent reduction in their debts, applicants must demonstrate that they have exhausted all resources to pay the tax and have little hope of raising the funds.

At GAI (www.gunwel.com) we can help you with all of your tax needs. Call us to set up your free consultation at 212-979-6830 or just stop by for a visit. We are open from 8am-8pm Monday thru Friday and Saturday 8am to 5pm. See you soon!

Advertisements
One Comment leave one →
  1. January 29, 2013 11:59 am

    Very interesting! Keep writing your articles.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: