New IRS Collections Policy (?)

[JohnH]

http://apnews.myway.com/article/20090106/D95HURKO1.html

[Gene V]

some more information

http://apnews.myway.com/article/20090106/D95HURKO1.html

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

[taxea]

"the IRS is offering to waive late penalties, negotiate new payment plans and postpone asset seizures for delinquent taxpayers who are financially strapped, but make a good-faith effort to settle their tax debts."

I don't see anything new about this. The IRS has always been willing to waive penalties and late fees but, not interest. They will negotiate new payment plans and if one goes onto an installment agreement they will back off on leins and levys.

So what is new? taxea

[Larmil]

May be the presentation -

"the IRS is offering to waive late penalties, negotiate new payment plans and postpone asset seizures for delinquent taxpayers who are financially strapped, but make a good-faith effort to settle their tax debts."

I don't see anything new about this. The IRS has always been willing to waive penalties and late fees but, not interest. They will negotiate new payment plans and if one goes onto an installment agreement they will back off on leins and levys.

So what is new? taxea

They are announcing this to the taxpayers. We knew that they would waive certain penalties but our clients did not usually know it.

[S T]

Good Face

IRS, being the "kinder and gentler" agency came to the fore front to let the tax payers know that there are solutions.

It was on CNN tonight.

Sandy

[taxea]

Larmil...I understand that but the news article I read put a slant on it that the IRS is addressing this as a "new policy"...the only thing that would be new is if they are even more willing than before to waive, etc....but your point is well taken. taxe

[Davc]

Larmil...I understand that but the news article I read put a slant on it that the IRS is addressing this as a "new policy"...the only thing that would be new is if they are even more willing than before to waive, etc....but your point is well taken. taxe

TV news also called it a new policy.

[JohnH]

It could be a mixture of both old and new. As everyone has said already, we already knew the IRS often waives penalties under certain circumstances. The new part may be that people farther down the ladder now have the authority to waive larger amounts and possibly can apply more lenient standards. Naturally IRS would not furnish the details if this were the case, but by promoting it as a "new" policy, they may induce more taxpayers to contact them before things get out of hand.

I like it for another reason. We all get calls from people who are in difficult circumstances, but simply can't afford to pay for help or are too stingy to do so. (One of my favorite comments I read from someone on this forum a long time ago is "If I'm going to work for free, I'd rather take the time off.") Now at least we can tell them about the "new" policy and encourage them to call IRS & get something worked out. If they're truly desperate, there's a greater chance that they will get some relief.

[joanmcq]

What seemed new for me was the suspension of collections without a lot of documentation. If they mean they will do it without submitting a 433-A, outlining their entire life, then that is new.

[WhiteOleander]

What seemed new for me was the suspension of collections without a lot of documentation. If they mean they will do it without submitting a 433-A, outlining their entire life, then that is new.

The report I heard this am about this was the OIC rules would remain the same. You would have to prove you could not pay the debt now or in the future.

I think they just want to encourage people to contact them instead of the IRS trying to chase them.