SUN EDITORIAL:

IRS showing some heart

Federal tax agency offers help for people experiencing financial hardship

Monday, Jan. 12, 2009 | 2:08 a.m.

On the Web site of the Internal Revenue Service, there is advice for people who have been hit hard by the national economic meltdown. Under one of the headings — “What if I can’t pay my taxes?” — the first two words are “Don’t panic.”

Although the IRS hardly has a reputation for compassion toward struggling taxpayers, it is being more lenient this year because of the recession in which at least 2.6 million people have lost their jobs and millions more have suffered extensive losses.

But that leniency extends only to people who contact the IRS, either in person at an agency office or by phone at (800) 829-1040.

“The worst thing that someone can do is go dark and not be in a discussion with us,” IRS Commissioner Doug Shulman said last week in an interview with the Associated Press.

We believe the IRS is being fair in making this demand, as all Americans have a legal obligation to pay their taxes. No one should shun this responsibility, no matter how financially devastating the year might have been.

We also think it is only fair for the IRS to give people hurt by the recession the opportunity to work out a deal.

Although it is extraordinary for the IRS to help taxpayers on the verge of delinquency, the past year has been extraordinarily damaging to the finances of millions of people.

What the IRS is offering, according to reporting by AP, is to waive late penalties, negotiate new payment plans and postpone asset seizures for taxpayers who can prove that they cannot pay at all or in full by April 15.

We hope taxpayers whose finances have hit bottom take advantage of this reasonable offer from the IRS.

Their problems will only worsen if they simply let tax day go by without making a good-faith effort to negotiate a payment plan.