IRS Announces Operational Changes via “People First Initiative” During COVID-19
IRS Announces Operational Changes via “People First Initiative” During COVID-19
The IRS recently announced the “People First Initiative” which will provide immediate relief to taxpayers during the COVID-19 crisis. The initiative’s projected start date is April 1, and it will run at least through July 15, 2020.
Some key points of the initiative include:
Payments due between April 1 and July 15 will be suspended for taxpayers who are under an existing Installment Agreement. Suspending payments is also an option if you are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Deposit Installment Agreement. The IRS will not default any Installment Agreements during this period. However, by law, interest will continue to accrue on any unpaid balances.
Taxpayers have until July 15 to provide requested additional information needed to support a pending offer in compromise (OIC). In addition, no pending OIC requests will be closed before July 15 without the taxpayer's consent. Taxpayers have the option of suspending all payments on accepted OICs until July 15 although again, by law, interest will continue to accrue on any unpaid balances.
In addition, the IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15.
Liens and levies, including new automatic and systematic ones, will be suspended along with any seizures of a personal residence initiated by field revenue officers. However, officers will continue to pursue high-income non-filers and perform other similar activities as warranted.
In addition, the IRS will:
Suspend new certifications to the Department of State for taxpayers who are seriously delinquent during this period
Not be forwarding new delinquent accounts to private collection agencies to work during this period
Not start new field, office, and correspondence examinations. (New examinations may be started if it is deemed necessary to preserve the applicable statute of limitations.)
As a taxpayer, you have until July 15 to respond to the IRS and verify that you qualify for the Earned Income Tax Credit or to verify your income. You are encouraged to exercise your best efforts to obtain and submit all requested information. If unable to do so, please reach out to the IRS indicating the reason such information is not available. Until July 15, the IRS will not deny these credits for a failure to provide requested information.
You can expect more information from the IRS shortly. We’ll keep you updated. In the meantime, contact us with any questions you have about your situation.
