(Source: News Sentinel)
By Rachel Louise Ensign
The Internal Revenue Service has made it easier to deal with your
tax debt.
Under new rules issued on Feb. 24, the IRS is making it easier to
obtain a "lien withdrawal," which removes a lien from public
records, according to the agency. Individuals who pay off their debt
in full and certain people who are currently paying down tax debt of
$25,000 or less are now eligible to apply for a withdrawal. They
will need to fill out IRS Form 12277: Application for Withdrawal.
To qualify for a lien withdrawal, you must currently owe $25,000
or less, sign up for automatic withdrawals if you're still making
payments to the IRS and you can't have any other tax debts. The IRS
also has stopped automatically filing liens on most people owing
$10,000 or less in taxes, double the previous limit, according to
the agency.
Another rule change allows those with higher income and bigger
debts to participate in the "offer in compromise program," which
lets taxpayers settle debts by paying a lesser amount than they owe.
The program is now open to single and joint filers who make a
maximum of $100,000 and owe $50,000 or less in taxes. That's double
the previous limits of $50,000 maximum income and $25,000 or less in
tax debt.
For more information, go to the IRS website ( www.irs.gov).
Originally published by Rachel Louise Ensign.
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