The IRS released a new program this week called the Taxpayer Relief Initiative, which aims to assist taxpayers who cannot pay their taxes because of the ongoing pandemic.
Taxpayers who have tax debt from previous years or due to the continuing pandemic and unable to pay for the debt have options offered by the IRS, such as installment agreements and offer compromises such as levies and lien. Now, case by case, they have more options under this new initiative.
- Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities, instead of the usual 120 days.
- IRS will allow more offer flexibilities in compromises for taxpayers who cannot meet the payment terms
- Taxpayers who went out of business and had a default on their agreements will automatically be added a new tax balance to the existing tax debt installment agreement.
- Qualified taxpayers who owe less than $250,000 of tax debt may set up an installment plan agreement without providing financial statements if the payment proposal is sufficient.
- Individual taxpayers who only owe 2019 tax debt and owe less than $250,000 of tax debt may qualify to set up an installment agreement without having a Notice of Federal Tax Lien filed by the IRS.
- Taxpayers who already have an existing direct debit install agreement on their tax debt can now use the payment agreement system to negotiate lower monthly payments for their tax debt, along with changing payment due dates.
- Taxpayers with tax debt who cannot pay can contact the IRS to request a temporary halt on their tax debt collection, and the IRS will grant the halt if the taxpayer cannot pay.
The specialists and attorneys at Republic Tax Relief may assist you in the process of negotiations with the IRS by representing you on your behalf. Such negotiations may result in:
- Preventions of a tax lien or an IRS Levy
- An installment agreement to pay the debt over time
- An offer in compromise (OIC) that can permanently settle the tax debt for far less than the amount you owe to the IRS
- Penalty abatement that removes tax penalties from the debt if you qualify for a defined special hardship
If you encounter troubles with your tax debt, our specialists and attorneys at Republic Tax Relief may help you negotiate with the IRS to maximize the possible reduction in fees and the debt you might have to pay with our proven methods in dealing with the IRS. Call us at (951) 707-4440 for consultations today.