Last year, I expressed skepticism over the IRS' claim that it would be more understanding regarding collections matters. The IRS, after much hype of making policy changes to decrease notice of federal tax lien filings, only reduced the amount of liens by 5.1%.
However, there is some good news. The IRS has been good for its word on withdrawing tax liens, and removing them in other limited circumstances. While the IRS no longer files liens for amounts so low that it costs more to record the lien than the amount of the tax debt, the IRS will still file liens in no equity situations — that is, there is no property to attach.
The IRS has also increased their Offer in Compromise acceptance rate. Here at the firm, we've also noticed that Offers we submit are getting accepted in record time. The IRS has really gotten the message that this economy stinks. They have been accepting our low valuations of remaining assets and have increased flexible payment options for the offer in compromise amounts.
Now, the bad news is that levies (garnishments) have increased by 4%. The IRS does not need a court order to levy, so if they aren't getting paid, it is quite easy for the IRS to garnish wages, bank accounts, and now, even 401K's.
Things will get easier for the IRS, once economic conditions improve. That's why for a lot of struggling taxpayers, now is really the time to make a deal to settle back tax debt with the IRS.
If you need assistance with a tax debt, a tax audit, levies or liens, contact us. We can help. Call us at 888-727-8796 or email firstname.lastname@example.org.