TAMPA, FL -- Are you struggling to pay your taxes? This year, the IRS will help. The current financial crisis has the IRS easing up on some of the rule for people who owe taxes.If you owe money this year, but can't make ends meet, you may qualify for an “offer in compromise”. It's a negotiated amount that's less that what you actually owe. To qualify you have to prove you have exhausted all other means.
In the past, the IRS would make you tap into home equity. But, because of the decline in home values, that equity could be gone. Make sure the IRS has the most recent information on the value of your home.
Next, if you can't get an offer in compromise, there is also more flexibility for missed payments.
Before if you missed a payment, then the entire amount would be due in full. This year, if you have a good payment history, the IRS may allow you to continue on the payment plan. But, you will pay interest.
And finally, if you have experienced a recent hardship, such as a job loss, the IRS might delay your payments. That means no phone calls and no collection letters during your financial hardship. It won't wipe out your debt, eventually you will have to pay.
In order for you to get help, you have to ask for it. Discuss these options with your tax preparer, and then call your local IRS field office.
Would you like free help preparing those taxes? Click here to find a free tax preparation site.
