Yesterday (March 25th, 2020) the IRS announced a People First Initiative, where the IRS announced that their priority would be helping taxpayers through uncertain times versus collection actions. These would include providing various payments relief and postponing taking compliance actions.
What are some of these changes?
- Have an Installment Agreement? Required Payments from April 1st thru July 15th have been suspended. The IRS will not default on any installment agreements during this period. As required by law, Interest will continue to Accrue.
Do you have an Offer In Compromise (OIC) in process?
- For Pending OIC Applications, the IRS will give taxpayers until July 15th to provided IRS requested information and the IS will not close any pending OIC before July 15th, 2020.
- If currently in an OIC, the taxpayer can suspend making payments until July 15th, 2020. Interest will Accrue.
- Taxpayers in an OIC with delinquent returns. The IRS will not default taxpayers with delinquent 2018 returns. Taxpayers should file by July 15th, 2020.
Levies and Liens
- Automated Levies and Liens are suspended through July 15th.
- Liens and Levies initiated by Field Officers will be suspended through July 15th except in special circumstances.
- Denials of New Passports or Passport Renewals will be suspended through July 15th.
- No new delinquent accounts will be forward by the IRS to private collection companies through July 15th.
Field, Office and Correspondence Audits
- The IRS will not start new audits through July 15th except in circumstances where it is deemed necessary to protect the government’s interest.
- In-Person Meetings for current audits will be suspended. However, where it is feasible, audits may be continued remotely.
- Appeals employees will continue to work cases by phone and/or videoconference.
- Do you have an issue where the Statute of Limitations expires in 2020? If so, if you do not agree to extend the statute, the IRS may take steps to protect the governent's interest.
There’s a lot going on at the IRS right now and the focus has turned towards assisting taxpayers vs. compliance actions. If you are currently in collections, it’s important to know how these changes impact you.
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