The IRS announced its Taxpayer Relief Initiative, a provision that aims to help taxpayers impacted by the Coronavirus pandemic. The measures include, among other things, more time to resolve tax liabilities and more flexible terms 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 takeaways you should keep 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, you can 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.
Learn More About Taxes
These are some previous posts you can read to gain a better insight into the world of taxes.
- The importance of knowing your correct filing status
- 7 Essential tax terms
- How to choose the right structure for a new business
- Beware of these tax-related scams!
- 3 Online resources you’ll need after filing your taxes
- Home office tax deduction: everything you need to know
Contact the Experts at Meadville Tax Service
At Meadville Tax Service we have made it our mission to help you file your taxes efficiently, limiting your tax liability while staying compliant with federal tax regulations.