New Tax Relief for Those Taxpayers Experiencing COVID-19-related Financial Difficulties


IRS Offers Various Tax Relief to Taxpayers Suffering Financial Difficulty During The Covid-19 Pandemic

On November 2, 2020, the IRS released new tax initiatives to offer help to taxpayers in the following variety of ways. Here are some of the more important tax collection options for taxpayers:

1. Taxpayers without income or the ability to pay can request a temporary suspension of collection activity through the Currently-Not-Collectible program.

2. Taxpayers with balance due amounts may qualify for installment agreement options with generous terms and time-frames, and taxpayers with existing Online Payment Agreements (OPA), or Direct Debit Installment Agreements (DDIA) can propose lower monthly payment amounts and update their payment due dates.

3. Other penalty relief options include first-time abatement for reasonable cause. 

Here’s a closer look at some of the specific details of the assistance that the IRS is offering:

  • The IRS is highlighting reasonable cause assistance available through IRS procedures for failure to file, failure to pay and failure to deposit penalties. First time abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.
  • For individual taxpayers receiving notices (letters about a tax bill) with tax liabilities up to $250,000 for Tax Year 2019 only, the IRS can offer one Installment Agreement opportunity with no lien filed.
  • The IRS is extending the short-term payment plan time-frame to 180 days (normally 120 days).
  • The IRS is easing paperwork requirements to allow individuals more flexibility to get non-streamlined Installment Agreements up to $250,000 without financial verification, if their case is not yet assigned to a revenue officer.
  • Extend guidance to automatically include new tax year balances accrued in existing Installment Agreements. (Individuals and Out of Business entities only)
  • The IRS will provide relief for taxpayers having difficulty meeting the terms of previously accepted offers.

Please give a call if we can be of assistance to you at 215-735-2336 or 215-283-3137.

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3 years ago

My immediate reaction on the latest regulations is that this will help a lot.

3 years ago

I apologize to the reader of my comment. I wanted to say:
Your immediate reaction on the latest regulations will help a lot.
Thank you for publishing my comment.

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