What You Need to Know About the IRS’ People First Initiative

During the Covid-19 pandemic, the Internal Revenue Service launched its People First Initiative (PFI) to help ease the burdens on taxpayers. The PFI aimed to help taxpayers struggling with IRS problems during the height of the pandemic.

How The People First Initiative Helped Taxpayers

The People First Initiative was announced by the IRS in March 2020 and ran from April 1, 2020, until July 15, 2020. The PFI was meant to give taxpayers relief from making payments or paying penalties during the most financially stressful months of the pandemic.

As part of the PFI, the IRS suspended new collection activities, new liens and levies, and stopped most of their auditing and field agent collection activities. The PFI also postponed payments that were due on installment agreements, Offers in Compromise, and other types of payment plans. The IRS also reminded taxpayers to file any outstanding past returns and take advantage of payment arrangements available for their tax debts.

The IRS ended its PFI at the end of tax season in 2020. Though the agency was urged to continue providing payment relief, the IRS resumed its collection activities on July 16, 2020.

Options After The End of PFI

Even though the PFI may have ended in 2020, there are still many existing options for taxpayers who owe money to the IRS. Taxpayers may be able to create an installment arrangement, which will allow them to pay any taxes owed to the IRS over time. Taxpayers who cannot pay their entire balance may also qualify for an Offer in Compromise, which allows the taxpayer to settle the debt for less than the total amount due. Finally, taxpayers suffering severe economic hardships may qualify for a temporary suspension of collection activities until they are more financially stable.

Don’t Wait To Get Help With Tax Problems

If you owe money to the IRS, you have opportunities to make your debt more manageable. Contact the experienced tax professionals at Highland Tax Group today to learn more about your options.