Yesterday, the IRS announced a series of actions to assist taxpayers facing the challenges of COVID-19 issues, ranging from postponing certain payment deadlines to limiting certain enforcement actions. The initiative – referred to as the IRS People First Initiative – has a projected start date of April 1, 2020 and will initially run through July 15, 2020. More specifics about the implementation of the initiative will follow, but key highlights include:

  • Suspension of Existing Installment Agreements: For taxpayers under an existing installment agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers with a direct deposit installment agreement may suspend payments during this period. However, interest will continue to accrue on any unpaid balances.
  • Suspension of Existing Offers in Compromise: Taxpayers have the option of suspending all payments on accepted offers in compromise until July 15, 2020, although interest will continue to accrue on any unpaid balances. In addition, the IRS will not default an existing offer in compromise for those taxpayers who are delinquent in filing their tax return for 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020.
  • Suspension of Collection Activities: Automated liens and levies and liens and levies initiated by field revenue officers will be suspended until July 15, 2020. New delinquent accounts will not be forwarded by the IRS to private collection agencies during this period. The IRS will also suspend new certifications to the Department of State for taxpayers who are “seriously delinquent” during this period. Certification prevents taxpayers from receiving or renewing passports. However, field revenue officers will continue to pursue high-income non-filers.
  • Correspondence and Meetings: Until July 15, 2020, the IRS will generally not start new examinations unless necessary to preserve the applicable statute of limitations. Where a statutory period is not set to expire during 2020, the IRS announced it is unlikely to pursue action until at least July 15, 2020. In-person meetings regarding current examinations will be suspended, although IRS examiners will continue their examinations remotely, where possible. Appeals employees will continue to work their cases.

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