Collection Relief Procedures
In IR-2020-248 (Nov. 2, 2020) the IRS announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. This will be helpful to taxpayers, especially those who have a record of filing their returns and paying their taxes on time. Among the highlights of this Taxpayer Relief Initiative:
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Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities instead of 120 days.
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The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
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The IRS will automatically add certain new tax balances to existing Instalment Agreements, for individual and out of business taxpayers. This taxpayer-friendly approach will occur instead of defaulting the agreement, which can complicate matters for those trying to pay their taxes.
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To reduce paperwork burden, certain qualified individual taxpayers who owe less than $250,000 may set up Instalment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient.,
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Some individual taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Instalment Agreement without a notice of federal tax lien filed by the IRS.
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Additionally, qualified taxpayers with existing Direct Debit Instalment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment amounts and change their payment due dates.
IR-2020-248 does not reference an ending date for these relief collection procedures.