Finally some good news from the IRS. They are going to file fewer tax liens. The IRS files tax liens against property when there are unpaid taxes. Currently, they file liens automatically when there is past due tax of $5,000 or more. They will be increasing the threshold to $10,000. They also have stated that they are going to stop doing automatic liens and instead will look at each individual case. I sure hope so! When the IRS puts those automatic plans in place, it never works out.
Tax liens can cost more then headaches. They stay on your credit report for 7 years from the date the liability is resolved.
The IRS is considering withdrawing liens after the taxes are paid. This will remove them from credit reports.
Settling for less
The IRS is also expanding its offer-in-compromise program to cover more taxpayers.
Under the new rules, individuals with annual incomes of up to $100,000 and tax debts of up to $50,000 can participant in the program that allows the IRS to settle the tax liability for less than the full amount owed.
Finally some good news out of the IRS. Let’s hope they follow through.