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.
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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.
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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.
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 jamie@myIRSteam.com.