IRS wants to be part of the Solution under Covid-19

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IRS wants to be part of the solution to improve the lives of all people in the US.  On March 25, 2020, IRS released the “IRS People First Initiative”  providing immediate relief to help people facing uncertainty over taxes. 
 

IRS People First Initiative includes:

• Suspension of Existing Installment Agreements (for taxpayers under an existing Installment Agreement), payments due between April 1 and July 15, 2020. IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.
• Allowing Taxpayers until July 15 to provide requested additional information to support a pending Offer in Compromise (OIC). IRS will not close any pending OIC request before July 15, 2020, without the Taxpayer’s consent.
• Suspension of OIC Payments on accepted OIC until July 15, 2020. By law, interest will continue to accrue on any unpaid balances.
• No default on an OIC for Taxpayers who are delinquent in filing their tax return for tax year 2018. Taxpayers should file any delinquent 2018 return (and 2019 return) on or before July 15, 2020.
• Suspension of liens and levies (including any seizures of a personal residence) initiated by field revenue officers until July 15, 2020. Field revenue officers will continue to pursue high-income non-filers and perform other similar activities where warranted.
• Suspension of new automatic, systemic liens and levies until July 15, 2020.
• Suspension of Passport Certifications to the State Department. IRS will suspend new certifications to the Department of State for taxpayers who are “seriously delinquent” until July 15, 2020.
• Not forwarding new delinquent accounts by the IRS to private collection agencies to work until July 15, 2020.
• Not starting a Field, Office and Correspondence Audit until July 15, 2020. IRS may start new examinations where deemed necessary to protect the government’s interest in preserving the applicable statute of limitations.
• Suspension of In-Person Meetings. However, IRS examiners will continue examinations remotely. Taxpayers ought to respond to any requests for information they already have received (or may receive) on all examination.

Delinquent returns (tax years prior to 2019) should be filed

IRS recommends that Non-Filers should file their delinquent returns.  IRS will continue to take steps where necessary to protect all applicable statutes of limitations. IRS can issue Notices of Deficiency and pursue other similar actions to protect the interests of the government.   

Taxpayers that need assistance with delinquent tax returns ought to consult a Tax specialist.

Practitioner Priority Service – Practitioners are reminded that, depending on staffing levels and allocations going forward, there may be more significant wait times for the PPS. The IRS will continue to monitor this as situations develop.

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