Due to COVID-19, the IRS’ People First Initiative provides relief to taxpayers on a variety of issues.
• Existing Installment Agreements- Under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are delayed. Those unable to meet the terms of an Installment Payment Agreement or Direct Deposit Installment Agreement may cancel payments during this time with no default. By law interest will continue to accumulate on unpaid balances.
• New Installment Agreements- People who can’t pay all their federal taxes can establish a monthly payment agreement.
• Pending Offer in Compromise applications- Taxpayers have until July 15, 2020, to provide additional information for a pending OIC.
• OIC payments- Taxpayers can delay all payments on accepted OICs until July 15, 2020. Interest may accrue, and missed payments are due when the suspension period ends. Taxpayers can call the number on the letter to address their needs.
• Non-filers- The deadline to get refunds on 2016 tax returns is July 15, 2020. Those who owe taxes on delinquent returns may visit IRS.gov for payment options.
• Field collection activities- IRS stopped field revenue officer enforcement actions, such as liens and levies.
• Automated liens and levies- IRS delayed issuing new automated and systemic liens and levies. Taxpayers experiencing a hardship due to a levy should reach out to their assigned IRS contact or fax their information to (855) 796-4524
• Private debt collection- IRS will not forward new delinquent accounts to private collection agencies during this period.
• Certifications to the State Department- IRS has delayed new certifications of taxpayers who are considered seriously delinquent. This affects a person’s ability to receive a new or renewed passport. Existing certifications will remain in place unless their tax situation changes.