Sen. Chuck Grassley, R-Iowa, ranking member of the Committee on Finance, along with two committee members, is urging the Treasury Department and Internal Revenue Service to take action to ensure that families who lose their homes to foreclosure face more reasonable, accurate tax bills for their home loan debt forgiveness. "Working families who lose their homes are getting hit with huge tax bills," Grassley said. "Some of those bills are unfairly high and even inaccurate. The IRS needs to take steps to ensure the accuracy of the bill in the first place. Then the IRS should offer the taxpayer every opportunity to negotiate the size of the bill and a fair payment plan. The agency has plenty of authority to treat taxpayers reasonably in these situations. It needs to use that authority to serve taxpayers." Grassley and fellow GOP Finance Committee members Sens. Gordon Smith of Oregon and Pat Roberts of Kansas, wrote to the Treasury to urge these changes. "While the Congress considers the president's proposal for relief Americans shouldn't have to wait to get the relief that is needed right now," they wrote. "We strongly urge the Treasury Department to take immediate steps to encourage working families that face the difficulties that the President outlined in his (Aug. 31) speech to submit (and have the Internal Revenue Service accept) offers in compromise that will either eliminate or reduce the taxes that they owe due to cancelled mortgage debt on a primary residence."
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