IRS - more liberal policies

For those dealing with the IRS at any level, save the following report.

Shulman Tells House Committee IRS Is Helping Small Businesses Suffering From Economic Downturn


The IRS is working to assist business taxpayers in distress and to treat people "fairly and compassionately in these difficult times," IRS Commissioner Doug Shulman told the House Small Business Committee April 1.



"It is inevitable ... that taxpayers will fall behind in their [tax] commitments," Shulman testified. "The IRS is acutely aware of the many problems confronting small businesses today - from struggling to make their payrolls, securing lines of credit, meeting their pension plan obligations and paying their taxes," Shulman said. "As IRS Commissioner, I am committed to striking the right balance between collecting [taxes] and using all the tools we have available to us to work with small businesses who find themselves in difficult times."



"As the economy got worse last summer, I sat down with my senior team and asked what can we do for taxpayers," Shulman recounted. One step was to give IRS employees more flexibility to suspend collection actions. The commissioner highlighted some of the agency actions that can benefit small business:



--Offering installment agreements to taxpayers under audit;



--Postponing collection actions in hardship cases;



--Allowing missed installment payments or reducing monthly payments; and



--Expediting the release of levies for hardship reasons.



Committee Chair Rep. Nydia Velazquez, D-N.Y., asked Shulman how the IRS will be more flexible to help taxpayers. Shulman replied that "the front-line employee talking to the taxpayer can take the collection case and put it to the back of the queue."



Velazquez commented that "In February, small business finally got their stimulus. The IRS needs to ensure the meanings of the incentives are clear so small business can take advantage of them. Unfortunately, clarification has never been a strong point of the IRS."



Shulman responded that "The president has asked every agency to prioritize the Stimulus Act.," adding that the new net operating loss tax provision "could throw a lifeline to struggling businesses, providing them with a quick infusion of cash. The IRS wants to make it as easy as possible for small businesses to take advantage of these key tax benefits." Shulman also noted that "The IRS has ensured proper staffing for expedited refunds [and] will work to issue refunds within 45 days or even earlier to the degree possible."



Shulman's testimony touted the IRS's outreach to small businesses, which can "keep them informed of legislative changes that can affect their tax responsibilities." He also commented that the IRS assists small businesses that maintain retirement plans.