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COVID-19: The IRS Goes Easy on Taxpayers Who Owe Back Taxes

December 20, 2020

It should come as no surprise that many taxpayers are struggling to pay their taxes.

In fact, because of the COVID-19 pandemic, over 11,000,000 taxpayers owe back taxes to the IRS.

During the first phase of the pandemic, the IRS put a temporary halt to most of its collection efforts. A big help.

However, a while ago the IRS started ramping up its collection efforts again and began sending out balance-due messages to taxpayers in arrears.

But recently, the situation has improved somewhat. In order to help taxpayers who can’t pay what they owe right now, the IRS recently created a new “Taxpayer Relief Initiative”.

It is designed to give taxpayers more time to pay what they owe the IRS and weather the pandemic storm.

Want to find out more about how the IRS is doing something to relieve the pain?

Read the full article…

“COVID-19: The IRS Goes Easy on Taxpayers
Who Owe Back Taxes”

Three of the Five important features
of the Tax Relief Initiative.

  1. The “payment in full” extension. If you’re able to pay your tax bill in full and in one lump sum, you may be granted more time to pay. In fact, the Tax Relief Initiative has increased the extension period from 120 days to 180 days. You’ll get the full story when you read the full article.
  2. Suspension of tax-bill payments due to hardship. In cases of hardship, the IRS can temporarily suspend collection of your tax bill until your financial condition improves. Your account-balance is classified as “currently not collectible.” If you’re granted this status, you shouldn’t hear from the IRS again for six months at least. All will be explained when you read this full article.
  3. Penalties and interest. Sorry, but almost all tax bills incur penalties and interest. But you may be able to avoid paying some or all of these penalties. We’ll tell you how when you…

Read the article…

“COVID-19: The IRS Goes Easy on Taxpayers
Who Owe Back Taxes”

Filed Under: Filing tips, Tax Planning, Tax Policy

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