IRS Taxpayer Relief Initiative

New Options for Settling Tax Debts

Settling tax debts and dealing with the IRS can be intimidating, let alone during a pandemic that has impacted the financial wellbeing of so many. The ALG Group has a longstanding track record of helping our clients navigate their options for tax resolution, and we’re here to help during these unprecedented times as well.

The good news is the IRS has also announced numerous changes within their Collection Division designed to provide further assistance to individual and business taxpayers experiencing financial hardship associated with the COVID-19 pandemic.

The new program, dubbed the Taxpayer Relief Initiative, builds upon existing options that have always been available to make paying owed tax liability easier for those struggling to do so, in addition to other pandemic-related relief provisions that were enacted earlier this year.

The ALG Group is committed to ensuring that you understand the options available to you. We’ve helped countless clients save thousands of dollars and we can apply our extensive knowledge and experience as tax resolution professionals to your individual situation to maximize the benefit of these recent changes.

Highlights of the New IRS Taxpayer ReliefInitiative

The new collection changes put forth by the IRS Taxpayer Relief Initiative are intended to help make it easier to set up payment agreements and repay tax debts for those who may be struggling as a result of the COVID-19 pandemic. It should be noted that these changes only apply to cases that are not assigned to a Revenue Officer in Field Collection. However, the changes below are especially helpful to taxpayers who have a record of filing and paying their taxes on time.

Relief for taxpayers struggling with tax debts include:

• Short-term payment plan terms have been extended from 120 days to 180 days. Under the new changes, taxpayers now have up to six(6) months to pay their owed tax balance in full, as opposed to the previous four (4) month timeframe.
• For those currently unable to meet the payment terms of an accepted offer-in-compromise (OIC), the IRS is now offering more flexibility for a limited time.
• Certain new tax balances will automatically be added to existing installment agreements held by individuals, as well as businesses that have permanently closed. This is intended to prevent default on the agreement.
• Individuals who owe less than $250,000 in taxes no longer have to provide financial statements or substantiation of expenses in order to set up an installment agreement.
• Individuals who only owe for the 2019 tax year and owe less than $250,000 may qualify for an installment agreement, without a notice of federal tax lien being filed by the IRS.
• Taxpayers with existing direct debit installment agreements and a tax debt of less than $50,000 are now able to propose lower monthly payments and change their payment due date online.
• Taxpayers who are currently unable to make payments may request that the IRS temporarily halt collection efforts. The ALG Group is more than happy to assist you with gathering the necessary documentation to prove inability to pay, as well as approach the IRS on your behalf to submit the request to halt collection.

The IRS Taxpayer Relief Initiative also highlights new reasonable-cause relief from additional penalties for those with existing failure-to-file, failure-to-pay and failure-to-deposit penalties. Additionally, first-time abatement penalty relief is now available for those subject to the aforementioned penalties for the first time. While these new changes may sound overwhelming, they’re intended to help provide additional options and extended timelines for repaying tax debt amid this year’s pandemic.

The ALG Group Is Your Partner In Tax Resolution for Individuals & Businesses

Dealing with the IRS and overcoming tax debt challenges can be intimidating, especially during such unprecedented times. Rest assured, you do not have to go it alone. The ALG Group is your steadfast partner in all aspects of tax resolution, tax planning and tax preparation. We’re here for you throughout the year, during and outside periods of crisis. If you have any questions about the collection changes put forth by the IRS Taxpayer Relief Initiative or need assistance contacting the IRS, don’t hesitate to contact us. We’re always here to help you formulate the best strategy possible for your unique circumstances.