IRS Announce Changes to Collections to Help Taxpayers Impacted by COVID-19

On Monday, the IRS announced its new Taxpayer Relief Initiative as a follow-up to its previous People First Initiative. The new initiative seeks to help taxpayers by expanding options to make payments and to make alternatives to resolve balances owed. The announcement can be viewed here.

The major COVID-related collection changes are:

  1. Taxpayers can request the IRS to temporarily delay the collection process until financial conditions improve.
  2. Taxpayers now have 180 days, from the previous 120 days, to pay off a short-term payment plan to resolve their tax liabilities.
  3. The IRS will automatically add new tax balances to existing Installment Agreements for individuals and out of business taxpayers. This prevents defaults of Installment Agreement plans and will help taxpayers save time and fees by not needing to set up new Installment Agreements.
  4. With a sufficient monthly payment proposal, taxpayers who owe less than $250,000 will not need to submit a financial statement or substantiation to set up an Installment Agreement. Unfortunately, taxpayers whose cases have been assigned to a revenue officer will not be able to take advantage of this procedure change.
  5. Taxpayers who owe less than $250,000 only for 2019 can set up an Installment Agreement without a federal tax lien filed against them.
  6. The IRS is also providing relief and flexibility for taxpayers who are temporarily unable to meet the terms of an accepted Offer in Compromise. Based on my experience, the IRS has offered more time to make up a missed payment instead of immediately defaulting the offer.

It is important to highlight that these changes show that the IRS is willing and ready to help taxpayers during these difficult times. If you are struggling with taxes, reach out to the IRS.

And if you need help assessing your situation and talking to the IRS, please feel free to contact me at either (404) 747-7073, or by email at [email protected]

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