The People First Initiative: COVID-19 | Flat Fee Tax Service | San Diego |California
Updated: May 4
The People First Initiative: COVID-19 Tax Debt Relief
It’s undeniable: COVID-19 (commonly referred to as coronavirus) is impacting almost every aspect of our lives right now. And while its effects are overwhelmingly negative, we are continuing to see a sweep of positive relief efforts come through.
From COVID-19 student loan relief to tax extensions, steps are being taken every day to help Americans get through this crisis.
On March 25, 2020 (last evening), the IRS announced its People First Initiative, which encompasses many steps to provide COVID-19 IRS tax debt relief to taxpayers across the United States. In addition to the extension of Tax Day to July 15, 2020, the IRS wants to offer taxpayers relief for their tax debt. Here is what some of those relief steps look like.
An Offer in Compromise (OIC) from the IRS is already a tricky program to qualify and apply for. This type of tax settlement agreement with the IRS (that could allow you to settle your debt for less than you owe) is highly desirable by those burdened with tax debt for obvious reasons. Whether you’re waiting for a response to your OIC application or you already have an OIC, the IRS has a few COVID-19 tax debt relief steps in place right now.
Do You Already have an Offer in Compromise?
If you’ve already had your Offer in Compromise (OIC) accepted by the IRS, you now have the option to suspend your payments until July 15, 2020. Interest will continue to accrue on your unpaid balance though. You’ll need to pay that additional interest in order to settle your tax debt.
If you have an OIC and are delinquent in filing your 2018 tax return, the IRS will not automatically default your OIC. You must file your delinquent 2018 return and your 2019 return by July 15, 2020.
Are You Waiting on a Pending Offer in Compromise (OIC) Application
If you need to provide any additional information to support your OIC at the IRS’s request, you now have until July 15. Any pending Offer in Compromise requests will not be closed before July 15, unless the IRS has the taxpayer’s consent.
If you’ve missed filing any returns before 2019, now might be the perfect time to file. The IRS claims that “more than 1 million households that haven’t filed tax returns during the last three years are actually owed refunds.” For those households, filing now could mean getting those refunds that you otherwise would have lost.
Unfiled tax returns can be tricky to file. So, it may be in your best interest to use a tax professional who can help you file responsibly. Appeals to Continue
If you currently have an IRS appeal in progress, no need to worry. The IRS has made it clear to taxpayers that their appeals employees are continuing to work their cases. They will not be holding in-person conferences, but they are continuing to communicate over the phone or via video conference.
Options for those dealing with tax debt
During this time of turmoil and uncertainty, the IRS is reminding taxpayers who are delinquent that they have options if they’re struggling with tax debt. If you’re dealing with delinquent tax debt, you should take this time period to explore the tax relief options available to you through the Fresh Start Initiative.
Our experienced tax professionals can walk you through all of the tax relief options offered to you. We definitely work with the IRS while protecting you. With all that is going on in the world right now, even the IRS has admitted that its wait times over the phone may be longer. Presently, the IRS phone lines have been impossible to connect to. Why not have Flat Fee Tax Service get your tax debt ducks in a row and deal with the IRS for you?
As more COVID-19 tax debt relief updates come in from the IRS, our tax professionals will keep you informed and updated.
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