IRS Announces New Relief Options for Taxpayers Impacted by COVID-19
The IRS announced this week its Taxpayer Relief Initiative, a series of measures designed to help taxpayers impacted by the COVID-19 pandemic. The provisions include more flexible terms to resolve tax liabilities and make it easier for taxpayers to set up installment agreements.
- If you qualify for a short-term payment plan you may now have up to 180 days to resolve your tax liabilities instead of 120.
- The IRS may be flexible if you are temporarily unable to meet the terms of an accepted Offer in Compromise.
- If you owe less than $250,000 you may be able to set up an installment agreement without providing a financial statement if your monthly payment proposal is sufficient.
- Those taxpayers who owe only for the 2019 tax year and owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.
- Qualified taxpayers with existing Direct Debit Installment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment amounts and change their payment due dates.
These are other aspects of the Taxpayer Relief Initiative that are worth keeping in mind:
- You can request to temporarily delay collection. If the IRS determines that you are unable to pay, it may delay the collection process.
- You may settle your tax bill for less than the amount you owe by submitting an Offer in Compromise. To check if you are eligible, use this online tool: Offer in Compromise Pre-Qualifier.
- Some taxpayers may get relief from penalties. You may qualify for reasonable cause assistance if you have failure to file, pay, and deposit penalties. Additionally, first-time penalty relief is available if you have never been subject to tax penalties before.
More Tips About Taxes
Learning more about the options available to you as a taxpayer is more important than ever. Check out these previous posts for more useful tax tips:
- These are some expenses educators can deduct from their taxes
- 3 Tools you need after filing your taxes
- Keep in mind these ideas when you file your taxes
- We debunk 4 common myths about tax returns
- Don’t forget this essential step if you are starting a new business
Contact the Experts at JT Tax Services
Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.