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IRS People First Initiative Brings Relief to Taxpayers

Thursday, April 09, 2020

The IRS released information on March 25 announcing sweeping changes to provide temporary relief and assistance to taxpayers ranging from easing payment guidelines to postponing compliance actions. According to IRS Commissioner Chuck Rettig, these unprecedented actions taken by the IRS will supplement the impact of the extended tax deadlines and provide much-needed relief to people and businesses being impacted by COVID-19.

Existing Installment Agreements – payments that were due between April 1 and July 15, 2020, are suspended. Taxpayers who are currently unable to comply with current installment agreements may choose to suspend payments at this time. Additionally, the IRS will issue no defaults on an installment agreement during this time. However, legally, interest will continue to accrue any unpaid balance. For existing installment agreements, the IRS recommends that taxpayers that are currently unable to fully resolve their tax debt visit irs.gov to enter into a monthly payment agreement.

  • Pending Offer In Compromise (OIC) -taxpayers now have until July 15 to provide supporting information for pending OIC. Also, no pending OIC will be closed before July 15, 2020, without the taxpayer’s consent.
  • OIC Payments – although interest will continue to accrue towards any unpaid taxes by law, taxpayers are able to voluntarily suspend their payments until July 15, 2020.
  • Delinquent Return Filings – taxpayers who are delinquent in filing their tax returns for the tax year 2018 will not be default an OIC by the IRS. However, taxpayers should

The IRS has also presented new guidelines for Non-Filers, Field Collection Activities as well as Automated Liens and Levies, private debt collection, independent office of appeals, the statute of limitations and practitioner priority service. You can find more information about the provisions for each of these areas irs.gov.

Passport Certification to the State Department – Newcertifications for taxpayers who are seriously delinquent are suspended during this period. Taxpayers in this category are encouraged to request an installment agreement or Offer In Compromise (OIC) to resolve existing balances.  

Earned Income Tax Credit and Wage Verification Reviews – Taxpayers have until July 15, 2020, to verify their income and that they qualify for the Earned Income Tax Credit. Until July 15, 2020, the IRS will not deny credits for failure to provide the requested information. However, the IRS encourages these taxpayers to do their best to obtain the requested information and contact the IRS if unable to do so.

At Alliance Tax Solutions, we’re constantly monitoring all current legislation and IRS changes associated with the People First Initiative. With the high volume of information being published in the news media as well as through the IRS itself, we encourage you to consult a tax professional to better understand these changes and how they could potentially impact you as a taxpayer and business owner. Feel free to contact us for questions or to help you resolve any tax issues (404) 592-1227 or contact us for a consultation.  

 

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Alliance Tax Solutions, LLC, Accountant, Atlanta, GA