New Tax Payment Agreements
Available to taxpayers affected by COVID-19
The IRS announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS assessed its collection activities to see how it could provide relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options for making payments and alternatives to resolve balances owed.
The relief initiatives include:
· The IRS is highlighting reasonable cause assistance available through IRS procedures for failure to file, failure to pay and failure to deposit penalties. First time abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.
· For individual taxpayers receiving notices (letters about a tax bill) with tax liabilities up to $250,000 for tax year 2019, the IRS can offer one installment agreement opportunity with no lien filed.
· The IRS is extending the short-term payment plan timeframe to 180 days (normally 120 days) for those who qualify.
· The IRS is easing paperwork requirements to allow individuals more flexibility to get non-streamlined installment agreements for those who owe less than $250,000 without financial verification, if their case is not yet assigned to a revenue officer.
· The IRS is providing extended guidance to automatically include new tax year balances accrued in existing installment agreements for individuals and out of business entities.
· The IRS will provide relief for taxpayers having difficulty meeting the terms of previously accepted offers.