According to a recent article in the Washington Post, right now could be the best time in recent history to resolve your past due IRS tax bill. The IRS has recently announced changes to their collections guidelines, in an acknowledgment of the fact that many taxpayers are struggling in the current economy.

The IRS has announced it will host a series of open houses, where people who are behind can sit down with an IRS agent to attempt to work out a payment schedule that fits with the taxpayer’s budget. To see times and locations of the open houses, you can visit the IRS website. If you do choose to attempt to work directly with the IRS, be prepared to answer detailed questions about your income, assets, and regular monthly expenses. This information is used to determine the amount they feel you should be able to pay monthly.

In addition to having greater flexibility with payment plans, the IRS has also announced it will slightly loosen the standards for the Offer in Compromise program. Rather than taking an average of your last three years of income to determine your collectability, they will consider your current income and potential for future income. However, you may be required to sign an agreement requiring you to pay an additional amount if your income goes back up.

While it is generally a good thing that the IRS is being more sympathetic to taxpayers, they typically will not explore ALL of the options open to you to resolve your tax bill (for example, filing a Chapter 13 bankruptcy to reduce your tax bill). That’s why it can be beneficial to meet with a tax professional to review these options.