IRS Tax Leniency
What is IRS Tax Leniency?
In 2011, the Internal Revenue Service began offering a leniency plan for taxpayers who owe taxes but may not be able to pay them due to financial hardship. It is estimated that the IRS issues over 600,000 tax liens each year. The tax leniency program is designed to assist individuals and small businesses that have paid their taxes in the past, but are struggling to pay their current tax liabilities.
This is not the first time the IRS has made an attempt to ease tax burdens. In 2008, the IRS worked to assist financially distressed homeowners by making it easier for them to avoid having a tax lien affect the refinancing or sale of their home. In the case of refinancing, the taxpayer/homeowner could petition the IRS to make a pending tax lien secondary to the lien held by the bank on the property. For homeowners selling their homes for less than they owed on their mortgage, a common occurrence in these difficult economic times, they could request the IRS completely discharge a tax lien.
IRS employees were given more leeway in 2009 to help taxpayers in financial distress. In certain cases where hardship could be shown, such as job loss or severe illness, adjustments could be made to payments for back taxes or collection efforts could be deferred.
While we applaud the IRS for instituting such plans to help taxpayers in these tough economic times, it is important to note that tax leniency plans are not permanent and can be rescinded by the government at any time. There’s no time like the present to discuss your tax liability with an experienced IRS tax attorney. There may be a limited opportunity for you to benefit from the IRS tax leniency plan in such ways as:
- Late penalties waived
- Negotiation of payment plans
- Postponement of asset seizures
- Deferred levies on assets or bank accounts
At Strategic Tax Lawyers, a team of IRS tax lawyers led by a former IRS attorney can help you benefit from the federal tax leniency plans currently in place. Don’t delay and risk losing the chance to have the burden of your tax liabilities lessened. Call Strategic Tax Lawyers today at (800) 669-4775 for a free consultation and discussion of how the IRS tax leniency program may benefit you.