New kinder, gentler IRS policies

Owing money to the IRS can be one of the most uncomfortable things in the world. But now, in a surprise move, IRS Commissioner Doug Shulman has announced new initiatives aimed to help taxpayers who are unable to make good on their tax debt because of financial hardship.

The new rules will strengthen an old program called Offer in Compromise. The OIC program -- designed to allow delinquent taxpayers to negotiate a lump-sum settlement -- was something of a joke in the past. Most offers were flat-out denied because the IRS assumed people were lying. But now reasonable offers in compromise will be considered.

Here are some of the other new "kinder, gentler" IRS initiatives Shulman is instituting, courtesy of a recent USA TODAY article:

- Help more taxpayers with homes that have declined in value qualify for an OIC.
- Provide more flexibility when an installment payment is missed.
- A halt to phone calls and letters regarding back taxes.