Due to the current economic crisis, more Americans are struggling to meet their federal tax obligations. Although many of these individuals have a history of compliance, they are behind in their tax payments due to job loss, home foreclosure, a devastating illness or other unusual hardships.

The IRS has announced a number of steps to help those who are facing such financial difficulties. Depending on the circumstances, these individuals may be able to adjust payments for back taxes, avoid defaulting on payment agreements and possibly defer collection action. There are many situations in which IRS employees have been given more flexibility to assist struggling taxpayers, such as:

• the postponement of collection actions;
• allowing a skipped payment or a reduced monthly payment amount without automatic suspension of an Installment Agreement;
• an additional review for offers in compromise on home values;
• prevention of offer in compromise defaults;
• eased requirements for expedited levy releases; and
• more options for those taxpayers unable to pay their tax liability.