IRS Help for Taxpayers Owing Back Taxes

If you currently owe the IRS and are having trouble making payments due to your current financial condition, there may be relief for you from the IRS. While they won't forgive the debt, they will make it easier to get through the economic crisis. From IR-2009-2:

• There will be more flexibility for taxpayers with an installment agreement in place. They may be allowed to miss a payment or even reduce their monthly payment. Contact the IRS if this might help you (and it is always better to contact them before you cut your payment or miss one.)
• It may be possible to get a the IRS to take a second look at your Offer in Compromise. Because of the volatility of real estate, taxpayers in distress with real property assets may be entitled to a review of their OIC which takes market fluctuations into account. 
• If you have an Offer in Compromise payment plan, you can contact the IRS if you are having problems making payments. 
• In some situations, the IRS may suspend collection actions until the taxpayer is in a better position to pay their tax debt. 
• Levy release will be expedited once a debt has been paid. Again the taxpayer needs to contact the IRS at the phone number on their notice of levy. 

If you have questions, please contact the IRS handling your case.