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IRS Initiatives to Assist with Coronavirus Crisis

Amid the Coronavirus crisis, the IRS has issued a set of initiatives to help taxpayers.  They range from very helpful to nominal, but the IRS has stated there is more guidance and measures coming soon.

Here are the highlights:

  • Installment Agreements
    • Payments between April 1 to July 15 are suspended, and no agreements will be defaulted during this period
  • Offers in Compromise
    • Taxpayers have until July 15 to provide outstanding information
    • Taxpayers can choose to suspend any payments due until July 15
    • OIC’s will not be defaulted for late filing of the 2018 tax return if it is filed by July 15
  • Collection Activities
    • Per the IRS: “Liens and levies (including any seizures of a personal residence) initiated by field revenue officers will be suspended during this period. However, field revenue officers will continue to pursue high-income non-filers and perform other similar activities where warranted.” What this means is hard to interpret.  What are similar activities?  Who is a high-income non-filer?  We recommend anyone currently in collections to attempt to stay in contact with the IRS and/or their Revenue Officer.
  • General Activities
    • The IRS generally will not start new audits. For current audits, the IRS will attempt to either delay cases, make arrangements to work the case remotely, or consider special circumstances for audits that have unique situations.

There are other provisions, but they are mostly procedural and do not have any surprises.  The complete text can be found here.  IR-2020-59

Disclaimer: Hone Maxwell LLP articles and blogs are not intended as legal advice. Additional facts, facts specific to your situation or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.

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