IRS Announces Flexibility in Settlements - (OTCBB: TAXS)

As we begin to approach April, the end of tax season gets closer and closer. This is usually a time period we all seem to dread, however, this year the IRS will be taking steps to accommodate those who are having difficulty paying tax obligations due to unemployment or financial problems.

IRS commissioner Shulman has announced that IRS agents will be extending more flexibility when considering tax settlements. For example agents will be able to consider a taxpayer’s current income or their potential for future income when considering a settlement. In the past a compromise would be talked about, however, clients would be judged on their previous years of income. This can be misleading in economic hardships and times of high unemployment. The new step gives those who are unemployed an opportunity to discuss a compromise, when in previous years wouldn’t have such a luxury.

This will definitely help tax payers across the board and companies who offer tax services and counsel. One company in specific which is excited about this new step is TaxMasters Inc (OTCBB: TAXS). In an environment such as the one we are in today, more and more people are looking for counsel for tax relief. Shulman’s command for more flexibility will allow for more taxpayers, thousands to be specific, to become eligible for tax relief and compromise services. The increase of those eligible will give TaxMasters an even larger client base.

It will be interesting to see if the IRS will follow through with this new plan. Some are skeptical on the sincerity of the IRS and commission Shulman in specific.