Taxpayer Relief Initiatives from the IRS

Tuesday, November 3, 2020

The IRS is again up and working and they’re persevering with their efforts to assist struggling taxpayers impacted by COVID-19 and pure disasters. On November 2, 2020, the IRS unveiled new adjustments within the Assortment Division that are supposed to help taxpayers going through monetary challenges. Based on Darren Guillot, IRS Small Enterprise/Self-Employed Deputy Commissioner for Assortment: “…this has been a tough yr in lots of states coping with each COVID and pure disasters. In instances like these, coping with tax points could be robust. And we would like individuals to know our staff are dedicated to proceed serving to taxpayers wherever attainable, together with providing many choices for these struggling to pay their tax payments.”

The IRS is answerable for accumulating nearly 95 % of whole federal income by way of its compliance and assortment actions. Earlier this yr, the IRS supplied tax aid by way of implementation of the Individuals First Initiative. Whereas these aid provisions expired on July 15, 2020, the IRS has continued to make adjustments in assortment insurance policies and procedures whereas resuming crucial tax compliance duties.

Highlights of those assortment adjustments are listed under. It is very important word, nonetheless, that the adjustments listed under apply solely to circumstances that aren’t assigned to a Income Officer in Discipline Assortment.

Quick-term extensions of time to pay the tax stability in full have been prolonged to 180 days (six months). Previous to this modification, taxpayers had solely 120 days on a short-term extension.

To keep away from taxpayer default on current installment settlement, the IRS will routinely add sure new tax balances to the settlement.

People who owe lower than $250,000 can arrange an installment settlement with out having to supply monetary statements and substantiation of bills. For this to use, the legal responsibility have to be paid in full throughout the statute of limitations on assortment.

Particular person taxpayers who owe just for 2019 and who owe lower than $250,000 might qualify for an installment settlement with out the IRS submitting a discover of federal tax lien.

Taxpayers with current direct debit installment agreements who owe lower than $50,000 can suggest a decrease month-to-month quantity and alter their cost due date on-line.

As famous above, these adjustments DO NOT apply to circumstances which can be assigned to a Income Officer in Discipline Assortment.