More IRS Help for distressed homeowners...how's it working for your clients?

By
Real Estate Agent with Dudum Real Estate Group - BuyStageSell.com

Help for the distressed homeowners started with the 2009 tax filing season. These three options take away the previously inflexibility of the IRS as far as negotiation with homeowners.  IF you qualify for one or more of these you could obtain serious tax relief from the IRS.  See what I mean?  Hopefully as diligent Realtors we are advising our clients to seek the services of a CPA, tax attorney, etc, before making decisions that could affect their property and liability, as this sounds hopeful for many.

"Internal Revenue Service News Release (January 6, 2009) The Internal Revenue Service today kicked off the 2009 tax filing season by announcing a number of new steps to help financially distressed taxpayers maximize their refunds and speed payments while providing additional help to people struggling to meet their tax obligations. Among the areas where the IRS can provide assistance:

Postponement of Collection Actions: IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes instances when 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. If an individual has recently encountered this type of financial problem, IRS assistors may be able to suspend collection without documentation to minimize burden on the taxpayer. (Personally I have clients that have received this benefit...so it's worth the time and trouble to send in your documentation if you fit this criteria for postponement.)

Added Flexibility for Missed Payments: The 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. The IRS may allow a skipped payment or a reduced monthly payment amount without automatically suspending the Installment Agreement. Taxpayers in a difficult financial situation should contact the IRS. (Personally I know people who have exercised this option as well, with no berating or negativity on the phone by the IRS, they are a kinder, gentler government agency these days.)

Additional Review for Offers in Compromise on Home Values: An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed, may be a viable option for taxpayers experiencing economic difficulties. However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. (This can be a huge benefit to taxpayers who made lots of money in previous years and didn't have the cash left to pay the tax.  Realtors, loan agents, independent contractors and others on commission income are being assisted with this provision.) 

The NEW Kinder, gentler IRS is doing it's part to ease the burdens this economy has thrust upon us.  Hopefully none of you need this assistance, but it's nice to know it's here for you or any of your clients that could benefit from the provisions.  There are more, so check out the IRS website...for details.  http://www.irs.gov/newsroom/article/0,,id=202244,00.html

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 DRE #00615420
Terrylynn has been a Realtor in Contra Costa County for over 30 years.  She works with the Dudum Real Estate Group. Terrylynn is a local expert, who believes in specializing for better service to her clients.  She gives talks on Foreclosure Alternatives, Make Home Affordable Programs, Home Staging Consults before you Sell, and is a Senior Real Estate Specialist, Real Estate Collaborative Specialist-Divorce, Certified Residential Professional, EcoBroker and any more. There is no silly question, call now for advice and counsel about your real estate investment.  Click here for a question about the area.  Visit www.BuyStageSell.com to learn more about Terrylynn and her team of Real Estate Professionals and Staging Professionals.  We even stage our short sales! Why?  Because it works.    925 8760966  www.BuyStageSell.com

 

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  1. Bob Murphy 11/15/2009 02:24 AM
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Rainer
85,833
Bob Murphy
Re/Max First

Terrylynn - Thanks for sharing.  This is some additional for lots of folks already in trouble with their mortgage and taxes too.  There is help out there.  You just have to know where to find it.

November 15, 2009 02:20 AM
Rainer
85,833
Bob Murphy
Re/Max First

Terrylynn - Thanks for sharing.  This is some additional for lots of folks already in trouble with their mortgage and taxes too.  There is help out there.  You just have to know where to find it.

November 15, 2009 02:20 AM
Rainmaker
238,853
Gene Allen
Realtor Hampton Roads Real Estate
Resh Realty Group

Good information and thanks for sharing.  Lots of stuff out there if you know how to get to it.

November 16, 2009 03:59 PM
Rainmaker
208,127
Terrylynn Fisher
HAFA Certified, EcoBroker, CRS, CEP Realtor, Etc.
Dudum Real Estate Group - BuyStageSell.com

Hey Bob, thank you for commenting.  I like the dialogue.

November 23, 2009 07:21 PM
Rainmaker
208,127
Terrylynn Fisher
HAFA Certified, EcoBroker, CRS, CEP Realtor, Etc.
Dudum Real Estate Group - BuyStageSell.com

Gene, I know, almost too much to sort through sometimes. 

November 23, 2009 07:21 PM
Rainmaker
214,336
Rita Minion
O'Brien Realty

Hello Terrylynn,

Good post & information!  Thank you for sharing.  There is a lot of help out there for distressed home owners.  Again, thank you for posting!  Have a nice evening!

Rita

  

December 09, 2009 07:30 PM
Rainmaker
208,127
Terrylynn Fisher
HAFA Certified, EcoBroker, CRS, CEP Realtor, Etc.
Dudum Real Estate Group - BuyStageSell.com

Thanks for commenting Rita.

December 12, 2009 02:07 AM
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Rainmaker
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Terrylynn Fisher

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