IRS Softens Rules During Financial Stress

Week of February 02, 2009

Employees of the Internal Revenue Service (IRS) have received new instructions on how to deal with taxpayers who face financial challenges because of home foreclosures, investment or retirement fund failures or other catastrophic income reversals. IRS agents are now being given authority to set aside penalties for delinquency and to work out more flexible payoff programs and even set aside property acquisition by the government for late payments or complete failure to pay. What is required by the taxpayer is a good-faith effort to settle their tax debts. For more information, visit or telephone your local IRS office.

To learn more about military taxes, visit the Military.com Tax Center.