IRS widens taxpayer debt forgiveness program

[Judi Lynn]

Source: Reuters

IRS widens taxpayer debt forgiveness program
WASHINGTON | Mon May 21, 2012 7:39pm EDT

(Reuters) - More middle-class Americans will be able to work out their debts to the U.S. Internal Revenue Service because of changes in a tax payment forgiveness program, the agency announced on Monday.

The "Offer in Compromise" program lets taxpayers negotiate agreements with the IRS to pay less than the full tax owed. The announced changes make the program more flexible for taxpayers, with some people able to pay off their debts faster, according to the IRS.

The IRS announcement focused on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise.

Additionally, the program gives taxpayers flexibility to payoff student loans and local taxes while making the federal tax payments.


Read more: http://www.reuters.com/article/2012/05/21/us-usa-tax-irs-idUSBRE84K1BP20120521

[fasttense]

1. And people complain how Greek citizens avoid their taxes. n/t

[lunatica]

2. See, that's a statement that is totally unfair

I've been paying the IRS monthly since 2008 because I had to live off my retirement money in order to take care of my mother who was sick and had Dementia. I couldn't continue to work because it would cost me my entire salary and more to have someone care for her. And there was this little pesky thing about paying the mortgage and buying food and other expenses that don't go away. And today there are hundreds of thousands of people who are unemployed through no fault of their own but if they go through their retirement funds must still pay taxes on it. Most people work up a deal to make monthly payments. And like so many other debts you end up owing on the taxes in the subsequent years too. It's like always taking a step back for every step forward.