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Abstract: 

Challenging economic conditions cause many people to have difficulty covering expenses, including taxes. Aware of this difficulty, the IRS is pursuing several initiatives designed to maximize collections for the government while relieving stress on taxpayers who find themselves in seemingly hopeless situations. During 2011, the IRS modified several of its practices and procedures in an effort to benefit taxpayers. A more liberal application of the innocent spouse defense, offers in compromise, installment agreements, and payment extensions may be approaches the IRS is open to. Some restraint in the collection area may be shown for hardship cases. This article analyzes options that taxpayers who are having trouble paying their tax liabilities should investigate.

Keywords:  innocent spouse; IRS Notice 2011-70; IRS Notice 2012-8; tax lien; IR 2011-20; levy, offers in compromise; hardship cases; Taxpayer Assistance Orders; Voluntary Classification Settlement Program

Affiliations:  1: Wichita State University.