IRS to help unemployed make tax payments

The Internal Revenue Service Tuesday announced it is taking steps to help people who are having difficulty paying their taxes because of unemployment or other financial problems.”Times are tough for many people and the IRS wants to do everything it can to help people who have lost their job or face financial strain,” IRS Commissioner Doug Shulman said. “We continue to make adjustments to key programs and expand ways for people to get help. We’re doing everything we can to help ease the burden on struggling taxpayers.”The steps include additional flexibility on offers in compromise for struggling taxpayers, a series of Saturday open houses offering taxpayers extra opportunities to work out tax problems face to face with the IRS; special outreach with partner groups to unemployed taxpayers; and the availability of more information on a special section of the IRS Web site.For some taxpayers, a compromise agreement with IRS can settle the taxpayer’s debt for less than the full amount owed. IRS employees now have additional flexibility when considering compromise offers from taxpayers facing economic troubles, including the recently unemployed, according to IRS spokeswoman Peggy Riley.Specifically, IRS employees will be permitted to consider a taxpayer’s current income and potential for future income when negotiating a settlement.The standard practice is to judge an offer amount on a taxpayer’s earnings in prior years. This new step provides greater flexibility when considering offers in compromise from the unemployed, Riley said.The IRS may also require that a taxpayer entering into such an offer agree to pay more if the taxpayer’s financial situation improves significantly.The IRS will hold hundreds of special Saturday open houses to give struggling taxpayers more opportunity to work directly with IRS employees to resolve issues. The offices will be open March 27 and three additional Saturdays in the spring and early summer. Dates, times and locations will be announced.