Episode 21: IRS Announces New Taxpayer Friendly Initiatives

The IRS has rolled out some new initiatives to help taxpayers in trouble. Details are forthcoming but here is what we know right now.

The IRS is offering the following options, in addition to the regular tools, to provide relief during the pandemic:

  • Short-term extensions of time to pay the tax balance in full have been extended to 180 days (six months). Prior to this change, taxpayers had only 120 days on a short-term extension.
  • To avoid taxpayer default on existing installment agreement, the IRS will automatically add certain new tax balances to the agreement.
  • Individuals who owe less than $250,000 can set up an installment agreement without having to provide financial statements and substantiation of expenses. For this to apply, the liability must be paid in full within the statute of limitations on collection.
  • Individual taxpayers who owe only for 2019 and who owe less than $250,000 may qualify for an installment agreement without the IRS filing a notice of federal tax lien.
  • Taxpayers with existing direct debit installment agreements who owe less than $50,000 can propose a lower monthly amount and change their payment due date online.
  • If the IRS has identified your return for an audit or examination
  • If the IRS intends to take collection action against you, such as by filing a lien or levy
  • How the IRS applied any tax payments to your account

Talk with a tax professional if you or someone you know has a tax problem. One of these initiatives or one of the IRS regular resolution options can help you permanently resolve your IRS problems. Act now to get help. Doing nothing only makes the problem worse.

You can go to https://www.irs.gov/newsroom/irs-makes-it-easier-to-set-up-payment-agreements-offers-other-relief-to-taxpayers-struggling-with-tax-debts if you want more details on each type of transcript. 


How to obtain your IRS transcripts:

Online at: https://www.irs.gov/individuals/get-transcript 

Phone at: 1-800-829-1040

If you want to check your IRS balance due: https://www.irs.gov/payments/view-your-tax-account 


If you or someone you know has a tax problem, call our office at 207-502-7181 or email us at jwade@jdwadelaw.com. We will be glad to help you. Otherwise, please enjoy our content and let us know if there are topics you'd like us to discuss.

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