The New IRS COVID Relief Rules — What You Need to Know: Part II

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After a brief and unprecedented period of COVID-prompted forgiveness from the IRS, the agency appears poised for a crackdown. It will no longer be as easy to procrastinate on paying taxes or making arrangements to resolve debt.

Thankfully, IRS Deputy Commissioner Darren Guillot and other leaders at the agency recognize that well-meaning individuals are going to continue struggling with tax obligations. As such, several concessions are available to those who receive first-time notices of tax delinquency or are clearly committed to addressing their debt. Offered under the Taxpayer Relief Initiative, many of these involve installments, as highlighted below:

Creating New Installment Agreements During COVID

A recent publication from the IRS reveals that individual taxpayers who receive notices about liabilities for Tax Year 2019 may be eligible for installments with no liens filed, as long as they owe less than $250,000. Better yet, the agency has extended the short-term payment plan to a full 180 days. This represents a significant increase compared to the previous 120-day plan.

The process of securing an installment agreement will also be easier moving forward. Applicants will encounter fewer paperwork requirements, as well as the opportunity to make installments without financial verification.

COVID-Era Opportunities for Changing Existing Installment Agreements

Many taxpayers who previously made arrangements to pay installments to the IRS are now struggling to handle these transactions. Fortunately, it’s now easier to use the agency’s online payment system to change due dates and propose reduced monthly payments. This ability is reserved for those who’ve already made installment agreements involving direct debit.

Whether you need to create a new installment agreement or change an existing one, you can achieve more favorable terms if you work with the Highland Tax Group. Contact us today to learn how we can assist you with COVID-related tax issues.