IRS eases rules on tax settlements

WASHINGTON (AP) - The Internal Revenue Service is giving agents more flexibility to work with taxpayers who have seen their incomes drop during the recession.

IRS Commissioner Doug Shulman said Tuesday that the agency is loosening its rules for negotiating tax settlements for less than the amount owed. The agency also plans to start opening some local offices on Saturdays, beginning March 27, to give taxpayers more opportunities to resolve their tax debts.

The IRS expects to process 138 million individual tax returns this year. Most will qualify for refunds, but with the economy shedding more than 8 million jobs since the start of the recession, many taxpayers will be unable to make timely payments.