Back Taxes Help from the IRS

Last updated on August 16, 2022

In a recovering economy, the IRS is doing its part to help taxpayers resolve their back taxes. The IRS is providing back taxes help by simplifying the resolution process of many tax debt payment plans including Innocent Spouse and Offer in Compromise. The qualifying factors and the resolution of back taxes after qualifying have been made simpler.

Under its current Fresh Start initiative, the IRS has added flexibility to Offer in Compromise program. Under a Streamlined Offer in Compromise, taxpayers will receive fewer requests for additional financial information, as the IRS will give greater flexibility when considering a taxpayer’s ability to pay. The agency will also show flexibility with:

• Determining equity in assets
• Determining allowable living expenses
• Reducing the amount of future income included in the offer

However, the time frame to complete the Offer in Compromise payment process has been decreased to two years.

Recently, the IRS proposed to extend the deadline for applying for Innocent Spouse Relief from two years to 10 years. The proposal is mainly considering victims of domestic violence and single mothers who are many times unable to seek relief through Innocent Spouse because of its strict restrictions. If the proposal is accepted, it will assist millions of taxpayers in resolving their back taxes.

Taxpayers will find back taxes resolution simpler because of these initiatives by the IRS. Still, it is a better choice to consult a tax professional before contacting the IRS about these programs.