Impact of Covid 19 on Taxpayers
  • May 7, 2020
  • admin
  • 0

COVID-19, an infectious disease caused by the novel coronavirus, has infected a large number of people worldwide. The number of reported cases in the United States alone has shot through the roof with deaths currently around 50,000. People are facing a whole range of challenges, financial and otherwise in the fight against the pandemic. Keeping that in mind, the IRS has taken a few steps to mitigate the impact on taxpayers in the form of the new People’s First Initiative. The initiative is designed to provide some relief to taxpayers who are finding it difficult to meet their tax obligations. To have a better understanding of the initiative and other help such as tax lien assistance, please call our office and talk with our Dallas-based IRS tax lawyers. Continuing on the topic, in this blog post, we discuss the steps taken by the IRS to mitigate the impact of Covid 19 on taxpayers. Read on.

1. Existing Installment Agreements

As per the IRS installment agreement, taxpayers can pay their overdue taxes in manageable amounts within an extended timeframe. Given the impact of the coronavirus pandemic, people are finding it difficult to manage their tax obligations. To lessen the burden, the IRS has suspended all payments due between April 1 and July 15, 2020, for taxpayers with existing payment plans. That being said, interest will still be charged on outstanding balances.

Related Blog: 3 Things you Must Know about IRS Appeals

2. Offer in Compromise

The IRS has suspended payments until July15, 2020 for all the taxpayers with OIC applications that have been accepted, but as per the law, interest will continue to be charged on outstanding payments. Taxpayers whose OIC application requests are still pending have time until July 15 to provide all the required information as the IRS will not close any pending requests before the said date without the consent of the affected taxpayers. In addition, all taxpayers should file tax returns for the years 2018 and 2019 on or after July 15, 2020, as the IRS has decided on not defaulting an OIC for taxpayers who have not filed their returns for 2018.

3. Field Collection Activities

The last thing anyone wants in these tough times is to lose their assets. Being aware of the difficulties faced by the taxpayers, the IRS has suspended all the field collection activities such as liens, levies, and seizures of personal residences until 15 July. While the IRS is taking the right measures to safeguard a taxpayer’s interest, it will continue to contact high-income non-filers and also perform other similar activities wherever and whenever needed.

Related Blog: A Guide to Paying Payroll Taxes to the IRS

4. Other Initiatives and Announcements

The IRS has suspended all correspondence, including field and office examination activities until July15, 2020, although the government agency may continue the examination remotely in certain unique situations. What’s more, the Independent Office of Appeals will continue case hearings over the telephone or videoconference. The IRS requests all the taxpayers to respond to any general requests. However, the IRS will still continue field collection operations for cases that the IRS deems to be important or urgent. Some of these cases will include cases with short collection statutes.

Wrap Up

While the IRS has taken some crucial steps to lessen the burden on the taxpayers, you can still contact a tax lien attorney if you need more clarification or help. The Law Offices of Nick Nemeth, PLLC offers IRS tax lien help such as tax lien withdrawal to taxpayers in Dallas. Simply call (972) 426-2553 or email us at

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above