Over many years of the tax payer having to endure the global recession the IRS has escalated the number of federal tax liens filed against the tax payer. This has been criticised by the National Taxpayers Advocate in a report but the IRS has recently announced a new and more flexible approach and attitude in its programs and policies to help tax payers pay back their taxes and avoid tax liens, as the IRS ease up on liens.

Federal tax lien is a public notice that an individual or business is in debt to the federal government. Once filed the information is noted with credit bureaus and can affect credit scoring even destroying them. The IRS has commented on important changes in an attempt to lessen the negative impact on taxpayers hence the IRS ease up on liens.

*Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.

*Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

*Creating easier access to installment agreements for more struggling small businesses.

*Expanding a streamlined Offer in Compromise program to cover more taxpayers.

Higher Lien Thresholds

Currently higher lien thresholds are filed at certain dollar levels for those who have past due balances. The IRS states that thresholds will be increased in an attempt the IRS ease up on liens.

Easier Lien

The IRS will look at modifying procedures that will make it easier for taxpayers to obtain lien withdrawals. Liens will be withdrawn once full tax payment is made if the taxpayer requests it. In order to speed up the process, the IRS will streamline its internal procedures to allow collection personnel to withdraw the liens. Again this shows the attempts IRS are making to ease up on liens.

Relaxed Rules for Installment Agreements for Small Businesses

The IRS have made streamlined installment agreements (IAs) available to small businesses. The payment program will raise the dollar from the current $10,000 to $25,000 or less in unpaid tax to allow small businesses to participate. Another example of the IRS easing up on liens.

The streamlined IAs will be available for small businesses that file either as an individual or as a business entity. Those with an unpaid assessment balance greater than $25,000 would then qualify for the streamlined IA if they pay down the balance to $25,000 or less.

Offers in Compromise

The IRS is expanding on a new streamlined Offer in Compromise (OIC) program to cover a new larger group of struggling tax payers. This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 with tax liabilities of less than $50,000 to participate. This is double the current limit of $25,000 or less in an attempt for the IRS to ease up on liens.

Although these changes are welcoming for the taxpayer in 2011 it is not certain that the IRS will ease up on liens and reduce collective enforced measures. The current economic climate has placed more people in a position where it is difficult to timely pay their tax obligations.