IRS Works to Ease Tax Burden05/06/2020
The IRS recently announced a series of steps to ease the burden for people who owe taxes in the wake of the COVID-19 emergency. Here are some of the highlights of the “IRS People First Initiative:”
Installment Agreements. For taxpayers with existing agreements with the IRS, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an agreement may suspend payments during this period too. By law, interest will continue to accrue on unpaid balances.
Offers in Compromise (OIC). An OIC is an agreement between a taxpayer and the IRS to settle a tax debt for less than the amount owed, and the IRS is providing OIC relief in different ways. For example, taxpayers have the option of suspending all payments on accepted OICs until July 15. However, by law, interest will continue to accrue on any unpaid balances.
Field Collection Activities. Liens and levies (including personal residence seizures) initiated by IRS field revenue officers will be suspended until July 15. However, field revenue officers will continue to pursue high-income non-filers and perform other activities if warranted.
IRS audits. Until July 15, the IRS generally won’t start new field, office and correspondence audits. However, the IRS added it, “may start new examinations where deemed necessary to protect the government’s interest in preserving the applicable statute of limitations.”
Contact us if you have questions about your tax bill or IRS compliance efforts.