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IRS Eases Collection Procedures

The Internal Revenue Service has launched a plan to help taxpayers who may be struggling to pay their tax because of the COVID-19 pandemic.  The IRS Taxpayer Relief Initiative is designed provide flexibility in payment plans, including installment agreements.

 Among the new terms is the ability of those who qualify for a short-term payment plan to have up to 180 days to pay, instead o 120 days.

The IRS is offering as well  flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.

Certain new tax balances for individual and out of business taxpayers will be automatically added to existing Installment Agreements. Meanwhile, qualified individual taxpayers who owe less than $250,000 may set up Installment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient. 

In some cases, individual taxpayers who owe less than $250,000 only for the 2019 tax may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS. Installment Agreements are usually available only to Individuals who owe less than $50,000 in income tax, penalties and interest or business with $25,000 or less combined and have file all tax returns.

Additionally, those with existing Direct Debit Installment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment and change payment due dates.

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