November 6, 2020
IRS Relief Options for Taxpayers Impacted by COVID
IRS introduces New Relief Options to Assist Taxpayers Impacted by COVID-19
Relief has been introduced by The Internal Revenue Service through various payment alternatives to assist taxpayers with no income or ability to pay their federal tax liabilities. The IRS has introduced a Currently-Not-Collectible program. The program is directed towards taxpayers without income or the ability to pay to request a temporary suspension of collection activity through this program. The taxpayers may qualify for installment agreement options with generous terms and extended timeframes, and taxpayers with existing On-Line Payment Agreements (OPA) or Direct Debit Installment Agreements (DDIA) can propose lower monthly payment due dates.
IRS Taxpayer Relief Initiatives:
• The IRS will provide relief for taxpayers having difficulty meeting the terms of previously accepted offers.
• Individual Taxpayers receiving notices with tax liabilities up to $250,000 for Tax Year 2019 only, the IRS can offer one installment Agreement opportunity with no lien filed.
• Reasonable cause assistance is 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 types of tax penalties.
• The IRS is extending the short term payment plan timeframe from 120 days to 180 days.
• Extended guidance to automatically include new tax year balances accrued in existing Installment Agreements for Individuals and Out of Balance Business entities only.
• The IRS is relaxing paperwork requirements to allow individuals more flexibility to get nonstreamlined Installment Agreements up to $250,000 without financial verification if their case is not yet assigned to a revenue officer.
There is a lot of available information available to assist taxpayers experiencing COVID-19 related financial difficulties to be aware of these options and how to get assistance. Click here for the link for the Currently-Not- Collectible program.
Maria is a Partner at Wilke & Associates servicing closely-held businesses in manufacturing, real estate, transportation/logistics, and technology industries as well as high net worth individuals and executives in delivering effective tax strategies.