You’ve done your taxes for 2009 and the paperwork says you owe the IRS over $1000. This is not a happy situation for anyone in normal circumstances, but what if you are unemployed to boot? The IRS recognizes that many people due to the current economic crisis might not be able to pay their tax bill this year and they are coming up with ways of getting your money, even if you don’t think you can afford to pay

In a press release issued on March 9, 2010, 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 agency will hold 1,000 open houses on Saturdays where taxpayers can work out payment problems with IRS officials. Is this more than a little self-serving? Yes, but just remember, that back taxes carry a rate of 16% interest, so it’s in the taxpayer’s best interest to pay their tax bills as quickly as possible. Some of the solutions offered at the Saturday open houses:

• Offer in Compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed. IRS employees will now have additional flexibility when considering offers in compromise from taxpayers facing economic troubles, including the recently unemployed.
• Help claiming tax benefits. Reading over IRS documentation is a daunting task, and some people may not realize they qualify for a tax benefit which may offset part of their current tax bill.
• Hardship. IRS agents can aid in postponement of collection actions in certain hardship cases. Assistance of the Taxpayer Advocate Service will be offered for those taxpayers experiencing particular hardship navigating the IRS.
• Added flexibility Some flexibility will be offered to tax payers for missed payments on installment agreements.
• Additional review of home values The IRS will help to Reassess the true value of your home in cases where real-estate valuations may not be accurate, causing your tax bill to go up erroneously.
• Accelerated levy releases. Levies occur when the IRS places a tax lien on private property. This lien or levy may be released in cases where the tax lien is uncollectible or there is significant hardship.

The open houses will begin Saturday, March 27. Check http://www.irs.gov for a full list of dates, times and places.

If you attend one of these open houses, please tell us about it by leaving a comment!

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