In an article brought to my attention by a great tipster (send in your tips here), the IRS says it will file fewer tax liens and make it easier to get those liens removed from credit records once the debt has been resolved. Kind of a form of legal credit repair.
In these tough economic times it can be helpful for people facing difficult tax situations to be better able to deal with problematic tax debt.
And apparently the IRS is also talking about expanding it’s debt settlement program for taxes, called an Offer in Compromise. In the past the OIC program was very limited to who could actually take advantage of it.
Liens will now be withdrawn once taxes are paid in full. The IRS will also withdraw liens when taxpayers sign up for a direct debit installment agreement — authorizing monthly payments to be deducted from their bank account — as long as the unpaid tax debt is $25,000 or less. Liens will be withdrawn once it’s clear that the payments are going through.
If you are interested in more about this subject, be sure to read the full article, IRS Eases Tax Debt Policies.IRS Says It Will File Fewer Tax Liens by Steve Rhode