Earlier this year, the Internal Revenue Service (IRS) provided relief and temporarily adjusted their processes to help people and businesses through the People First Initiative, which was in effect for the first months of COVID.

The IRS yesterday issued a press release reminding taxpayers of these enhanced opportunities for relief.

The IRS asks that taxpayers keep in contact when dealing with tax due, notices or other issues.  They encourage taxpayers to reach out and respond as quickly as possible.  It should also be noted that the agency’s commissioner informed federal lawmakers on Friday November 20th that there is a backlog of 1 million unprocessed tax returns and over 3 million unprocessed pieces of mail.

Some of the specific forms of relief detailed by the IRS are listed below.  The update from the IRS can be read in full HERE.

Helping People: IRS Taxpayer Relief Initiatives

  • The IRS is highlighting reasonable cause assistance available through IRS procedures for failure to file, failure to pay and failure to deposit penalties. First time abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.
  • For individual taxpayers receiving notices (letters about a tax bill) with tax liabilities up to $250,000 for Tax Year 2019 only, the IRS can offer one Installment Agreement opportunity with no lien filed.
  • The IRS is extending the short-term payment plan timeframe to 180 days (normally 120 days).
  • The IRS is easing paperwork requirements to allow individuals more flexibility to get non-streamlined Installment Agreements up to $250,000 without financial verification, if their case is not yet assigned to a revenue officer.
  • Extend guidance to automatically include new tax year balances accrued in existing Installment Agreements. (Individuals and Out of Business entities only)
  • The IRS will provide relief for taxpayers having difficulty meeting the terms of previously accepted offers.

We are in this together,

Brinker Simpson & Company, LLC

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s)