During this trying time for businesses, the IRS is making its best attempts to alleviate business owners’ financial stress. The IRS People First Initiative includes postponing certain payments, pausing pursuit of delinquent accounts, and more. Keep reading to find out more about how the IRS is helping businesses during this time.
IRS People First Initiative suspends existing installment agreements
If you have an existing installment payment and are having trouble making payments, payments can be suspended. According to the IRS People First Initiative, This applies to payments due between April 1, 2020, and July 15, 2020. Interest will still accrue during this time. Taxpayers can still enter into new installment agreements via the IRS website.
Offers in Compromise applications and payments
Offers in Compromise is a service that the IRS offers business owners to allow them to negotiate their unpaid tax debt. Taxpayers who are in the application process have until July 15, 2020, to provide the necessary information to complete their application. Additionally, applications will not be closed until July 15, 2020 (unless consented by the applicant).
If you would like to apply for OIC, this service is still available through the IRS website.
IRS People First Initiative suspends In-person visits
In an effort for social distancing, IRS agents will not be visiting businesses in person (besides extreme circumstances). This includes visits for Liens and levies including any seizures of a personal residence for the time being. This also includes general debt collection. New delinquent accounts will not be forwarded to the IRS. IRS audit examiners will continue their meetings virtually, if able. New audit examinations will not be opened unless it is absolutely necessary.
This information is also applicable to IRS officers working in appeals.
Statute of Limitations
The IRS will continue to protect the statute of limitations. If there is a statute of limitations that expires prior to April 1, the IRS encourages you to extend the statute.
If you have additional questions about how the IRS People First Initiative affects your business, please contact us. We are happy to help businesses succeed during this time! We have written many articles on how COVID19 is affecting businesses right now, check out our blog to read more.
To read the detailed information from the IRS on their People First Initiative, click here.