by: Jeffrey Quinn
Ah, here we are on another Friday the 13th. Two in a row, and nary a month away from pay day--to the IRS.
So, like a lot of folks at this time of year, you may be ruminating about whether to use one of your credit cards (yes--some folks do have more than one, believe it or not) to make that inevitable payment to Uncle on April 15.
Easier to "charge it," for sure, as opposed to writing a check on a bank or brokerage account that has probably taken a hit in recent months.
Not to mention the frequent flyer miles which you might rack up.
But, as noted recently in the Wall Street Journal, consider the cost--in the form of the 2+ percent convenience fee which your credit card company will charge you for their trouble.
Maybe you're just better off going to the IRS with hat in hand, asking for them to carry the balance for a while….
Indeed, the Revenooers recently made their big heart known to beleaguered taxpayers via their Information Release 2009-2. Quoth Commissioner Shulman, "With so many people facing financial difficulties, we want taxpayers to get all the tax credits they're entitled to as quickly as they can. In addition, we are creating new protections to help people trying to meet their tax obligations. The IRS will do everything it can to help during these tough times."
How cuddly.
Consider that IRS employees will now have greater authority to suspend collection actions in certain hardship cases in which taxpayers are unable to pay. This includes instances in which the taxpayer has recently lost a job, is relying solely on Social Security or welfare income or is facing devastating illness or significant medical bills.
And get this: IRS is allowing "more flexibility" for previously compliant individuals in existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. Not to mention the fact that IRS urges folks who are unable to meet the periodic payment terms of an accepted "offer in compromise" to discuss available options to help them avoid default. And….the IRS will even speed the delivery of levy releases by easing requirements on taxpayers who request expedited levy releases for hardship reasons.
Isn't government wonderful!
CONSULT YOUR TAX ADVISOR - This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn CPAs, with offices in Incline Village and Reno. He is also a contributor to the recently published twelfth edition of Tax Savvy for Small Business, published by Nolo. He can be reached at 831-7288, and welcomes comments at
jquinn@ashleyquinncpas.com.
