Monday, March 14, 2011

Help for Delinquent Tax Payers

If you are delinquent on your IRS tax bill now there is help. The IRS is trying to help taxpayers who are delinquent on their tax bills. They are reducing the number of property tax liens and loosening the rules for small businesses to allow small businesses to setup installment agreements to pay back taxes. Tax liens are notices that are filed on land to ensure the government will collect back taxes when a property is sold, i.e. real estate, boat, etc.

The new IRS guidelines increases the amount of taxes owed before a lien is placed. Liens are automatically placed when the limit is reached. If you owe $10,000 or more a lien is placed on your property, previously the minimum amount was $5,000. If you meet certain income or debt requirements you can settle your debt for less than the original amount owed.

Small businesses that owe up to $25,000 will now be eligible to setup 24 month payment plans. This is great for small businesses that are not struggling financially but for small businesses that are still recovering from the recession, this will cause many to go out of business. This may cause another recession for small businesses which greatly contribute to the health of the economy and provide jobs for millions of Americans.

Once a tax lien is placed on your property it remains on your credit report for 7 years from the date the lien is paid. Unpaid tax liens can remain on your credit report for up to 15 years. Tax liens also lower your credit score and are considered public records which may affect your employment and the ability to get hired for a job.

1 comment:

Darwin Smith said...

Hi all,

According to the IRS, you shouldn't panic if you can't pay the total amount of your taxes. The IRS has payment options available, and will work with you to find a payment option that fits your needs. Thanks a lot!

Delinquent Taxes