A Fresh Start for Struggling Taxpayers

The IRS has attempted to balance enforcement efforts with an understanding of the financial hardship incurred by many taxpayers resulting from our struggling economy. During the past few years, IRS employees have had more authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay and increased flexibility for previously compliant individuals in existing installment payment agreements having diffi culty making payments because of a job loss or other financial hardship.The Fresh Start initiative focuses on changes to IRS collection and lien practices, including: Adjustments to IRS lien policies including: (i) significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens; (ii) making it easier for taxpayers to obtain lien withdrawals after paying a tax bill; and (iii) withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. Creating easier access to Installment Agreements for small businesses with employees. Expanding the streamlined Offer in Compromise (OIC) program to cover more taxpayers.