The Tax Man Has A Heart!

Wow, who would believe this? The small businessperson is getting a break? Apparently, the tax man understands the enormous pain small business owners are feeling and experiencing with declining revenues and the resulting business closings.

They IRS has announced – admittedly rather quietly and a little sheepishly – that they will be softening their collection tactics and providing more cooperation and meaningful resolutions in response to the serious difficulties taxpayers are having in handling their tax obligations. This means increased authority at the lower end of the collection process to be softer, more patient, and yes, even more lenient in recognizing the taxpayer’s inability to satisfy their obligations.

This applies to Offers in Compromise and established payment programs where a single default would have otherwise resulted in a demand for full payment. Now such a default may be allowed as an acceptable, permissible reality and part of the ongoing program.

The point is that it is definitely time to step forward if you have a tax debt. The IRS said that they would be more lenient and understanding if you filed your forms and, if unable to pay, you called in asking for help. They also said that their collection efforts would not be reduced if there was no effort on the taxpayer’s side to come forward and discuss resolution. They further said they will even be more lenient with their noncollectable status which stops collection efforts and allows the taxpayer time to recover without further assault and invasion by the service.

Clearly, this is a good thing and something we should all be considering as now is perhaps the best time possible to settle your tax debt in view of the service’s newfound willingness to understand our difficulties and their commitment to cooperate with the taxpayer who is unable to pay their debts and obligations because of declining revenues, lost jobs and out-of-business situations. It may not be as good as a bail-out program, but it is a benefit we should all take advantage of.

Call us, set up an appointment and let’s discuss your tax issues. This is a good time to step forward and resolve the problems or at least reduce the collection effort which can be very damaging to say the least.