IRS To Help Financially Distressed Taxpayers

Taxpayers in hardship situations may be able to adjust payments for back taxes, avoid defaulting on payment agreements or possibly defer collection action as IRS is considering several options to help the taxpayers.

Some of the areas considered by IRS to help the taxpayers-

• Postponement of Collection Actions in certain hardship situation.
• Added Flexibility for Missed Payments in existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship.
• Additional Review for Offers in Compromise on Home Values.
• Prevention of Offer in Compromise Defaults by considering other available options.
• Expedited Levy Releases for hardship reasons.

For detailed information-

http://www.irs.gov/newsroom/article/0,,id=202244,00.html

Source:IR-2009-2, Jan. 6, 2009