10 Things to know about the COVID 19 IRS Tax Relief
Here is the 10 Things to know about the COVID 19 IRS Tax Relief. Enjoy the video below.
IRS issued Tax Relief for the COVID 19 Aka CoronaVirus Pandemic on March 25, 2020.
Nickname: “IRS People First Initiative”. It is part of the trillion-dollar stimulus package that was signed into law by our US Congress & President Trump.
IRS People First Initiative was announced by the IRS earlier today as a response to provide relief from the tax collections, payments and administrative tasks that may further complicate the current lives of taxpayers.
The Internal Revenue Service is powered by people, and these measures are also to consider the health & safety of its workforce.
The IRS Commissioner, Chuck Rettig stated “ "The IRS is taking extraordinary steps to help the people of our country,"... "In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unprecedented actions to ease the burden on people facing tax issues. During this difficult time, we want people working together, focused on their well-being, helping each other and others less fortunate."
The New Tax Relief signed into law on March 25, 2020 is being applied by the IRS is an immediate help to taxpayers for the improvement of quality of life
Prior to these new initiatives, the tax filing deadline had been extended to July 15, 2020 which were originally due on April 15, 2020
Thes new initiatves available are a temporary expansion on the current available solutions. For a detailed list of the available tax relief programs Click here
What are the details of the new legislation of IRS Peoples First? Let’s get to the highlights!
1. Taxpayers with current Payment Plans
For those who are under an existing payment plan, payments due between April 1 and July 15, 2020, are suspended. The IRS will not default for nonpayment of the Installment Plan.
2. Applying for a New Payment Plan
The IRS has provisions for accepting an installment plan. There are Fresh Start Agreements, Financial Based payment plans and tired payment plans available when you are not able to pay in full the amount due.
3. IRS Settlement Program: Offers in Compromise (O.I.C) –
If you have a pending OIC application being considered already by the IRS – The IRS is allowing until July 15, 2020, to provide requested additional information to support a pending OIC. They normally reject an OIC when documents are not presented in a timely manner, such as in 10 days. In addition, the IRS will not return any pending OIC request before July 15, 2020, without the applicant’s consent.
OIC Required Payments – OIC applicants have the option of stopping all payments on accepted OICs until July 15, 2020, even though interest will accrue according to the law on any unpaid balances.
Missing Return Filings - The IRS will return an OIC for those taxpayers who are missing any tax filings on their tax return for the tax year 2018 prior to July 15, 2020
Fresh Start - OIC Applications – The OIC applications are still being processed by the IRS! Whether you qualify under the expanded Fresh Start OIC for Doubt as to liability, doubt as to collectibility or effective administration, the IRS is processing new applications.
4. Missing Tax Returns
Haven’s filed a tax return in a couple of years? This step is required to proceed with most resolution programs. In fact, you are still able to claim a refund and receive it for tax years: 2017, 2018 & 2019.
5. EITC & Income Audits W
hen claiming the Earned Income Credit or When the IRS requests to submit proof of income, the IRS will give you until July 15, 2020, to submit supporting documentation.
6. Local IRS Collection Agent Visits & Appointments - An IRS local Collections agent is a Revenue Officer or “RO”. All RO assigned cases will be suspended from IRS Liens & Levy until 07/15/2020.
7. IRS Collections Liens and Levies, US Passport & Private Debt Collectors
The IRS will suspend all new automatic, systemic liens and levies.
In addition, the IRS will not certify to the Department of State anyone who is in “ Serious Delinquency” during this period
The IRS uses contracted Private Debt Collection Agencies to collect from certain people. The IRS will not assign new delinquent accounts to the private collectors for this time period.
8. Local & Mail IRS Audits
The IRS will not generally begin any new audits > locally or by mail/correspondence. The Local Offices are not having any in-person contact for the time being. However, the following warnings apply:
Current Audits may still be ongoing, however all by mail or fax, no in-person meetings.
Hardship or Unique situations - The IRS may consider a request from a business or person should they be in a unique situation. This is a case by case situation.
Respond to Any IRS issued mail, as general compliance is still required.
09.The IRS Independent Office of Appeals
The IRS office of appeals is an independent branch of the IRS. The Appeals Agents will continue to work their caseload, and in most cases, they can handle conferences via phone or mail.
10. Time as allowed by law
This is a general warning by the IRS. The IRS still reserves the right to take steps to collect on balances owed, enforce tax filings issue specific notices where you will have to respond to assert your rights. It is common to appeal in audit situations or collections actions such as wage garnishment or IRS issued Federal Tax Liens.
These initiatives are meant to be temporary in nature, and the IRS has the authority to modify or make changes to the IRS People First Initiative.
Here at Semper Tax Relief, we are closely paying attention to any legislation that passes that will benefit taxpayers.
Which part of the Initiatives are you interested in taking advantage of? Leave your question or comment below.
