An Economically Sensitive IRS?

The United States economy has been in a slump for the better part of a decade now. Juxtapose that with a poor jobs market, the rapidly rising cost of living, layoffs, and even rising gasoline prices and it's should come as no surprise that many families are struggling financially. Things have become so strenuous that even the IRS has taken steps to ensure that it can still do it's job while at the same time easing tax burdens for everyone. In 2009 the IRS implemented several new strategies to deal with collection problems and financial hardships.

Solving Collection Issues

·         The first thing the IRS did was give itself the ability to suspend collections in cases where a taxpayer is seriously ill, dependant on Social Security, or is unemployed/underemployed. In some cases the IRS suspends collection without documentation.

·         Rather than the rigid installment payment plans the IRS has been known for in the past, the institution became much more flexible in these plans, allowing taxpayers to pay less when necessary, defer payments, and set lower monthly minimums.

·         Although the IRS' obtuseness regarding the releasing of levies is both well known and documented, the IRS has been more empathetic and relaxed when it comes to releasing bank levies. Since 2009 more taxpayers have had their levies released than ever before.

·         Due to the real estate market being so adversely affected by the failing economy the IRS began reevaluating taxpayer's homes in 2009 in an effort to reassess equity. This has eased tax burdens on many a taxpayer.

Policies Vs Reality

Although the IRS has done right by many taxpayers since 2009 and used these new policies to great effect, it's not all sunshine and rainbows for taxpayers. Many still struggle with the stubbornness of the IRS, unreasonable IRS employees, and a general lack of compassion. This is why it's of vast importance to have a good tax attorney at your side anytime you have dealings with the IRS. A tax attorney can and will protect a taxpayer from intimidation, call the IRS on its bluffs, educate taxpayers about their rights, and ensure those rights are enforced.