IRS unveils new People First Initiative; COVID-19

Projected start date April 01-July 15

To help people facing the challenges of COVID-19 issues the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment to postponing compliance actions. The People First Initiative provides immediate relief to help people facing uncertainty over taxes.

Highlights of the key actions in the People First Initiative include:

Existing Installment Agreements– for taxpayers under an existing Installment Agreement, payments due between April 1 and July 1, 2020 are suspended. Furthermore, the IRS will not default any Installment Agreement during this period. By law interest will accrue on any unpaid balance.

New Installment Agreements– People unable to fully pay their federal taxes can resolve outstanding liabilities by entering into a monthly payment agreement with the IRS.

Offer In Compromise (OIC) – The IRS will allow until July 15 to provide requested additional information and will not close any pending OIC request before July 15, 2020.

Delinquent Return Filings – The IRS will not default on OIC for those taxpayers who are delinquent in filing their 2018 return.

New OIC Applications-The IRS reminds people facing a liability exceeding their net worth that the OIC process is designed to resolve outstanding tax liabilities by providing a “Fresh Start”.

Field Collection Activities– Liens and Levies (including any seizures of a personal residence) will be suspended during this period.

Passport Certification to the State Department– IRS will suspend new certifications to the Department of State for taxpayers who are “seriously delinquent” during this period. Certification prevents taxpayers from receiving or renewing passports.

Private Debt Collection– New delinquent accounts will not be forwarded by the IRS to private collection agencies to work during this period.

Earned Income Credit and Wage Verification Reviews– Taxpayers have until July 15, 2020 to respond to the IRS to verify that they qualify for the EITC or to verify their income.