IRS makes it easier to set up payment agreements

The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS.
The revised COVID- related procedures will be helpful, especially to those who have a record of filing their returns and paying their taxes on time.
Among the highlights of the Taxpayer Relief Initiative are:
• Taxpayers who qualify for a short-term payment plan option may now have 180 days to resolve their tax liabilities.
• The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
• The IRS will automatically add certain new tax balances to existing Installment Agreements.
• Certain qualified individual taxpayers who owe less than $250,000 may qualify to set up an Installment Agreement without providing a financial statement if their monthly payment proposal is sufficient.
• Additionally, qualified taxpayers with existing Direct Debit Installment Agreements may now be able to use Online Payment Agreement to propose lower monthly payment amounts and change their payment due dates.
Temporarily Delaying Collection- Taxpayers can contact the IRS to request temporary delay of the collection process. If the IRS DETRMINES A TAXPAYER IS UNABLE TO PAY, IT MAY DELAY COLLECTION UNTIL THE TAXPAYER’S FINANCIAL CONDITION IMPROVES.
Relief from Penalties-The IRS is highlighting reasonable cause assistance available for taxpayers with failure to file; pay and deposit penalties.
However, to request relief, taxpayers must be responsive when they receive a balance due notice. If you are having a tax issue don’t ignore the notice. The issue does not get better with time, and does not just go away.