The focus of my practice is civil and criminal tax controversy. At 2pm EST today the IRS released its response to assist taxpayers and give guidance as to what it will be doing as far as enforcement. IR-2020-59 provides important guidance concerning: Existing installment agreements, New installment agreements, Pending Offers-in-Compromises, Audits, and Field collection activities (i.e. tax liens and tax levies).
The highlights include:
- All 2019 Income Tax Returns that were due April 15th are not due July 15th – no request required. An extension may still be filed to get additional time until October 15th
- All tax payments due for April 15th – including income tax due with the 2019 return and ist quarter 2020 estimated tax payments are also deferred until July 15th
- Taxpayers may suspend existing installment agreement payments between April 1st and July 15th. This will apply even in direct-debit agreements. The IRS states it will not default any agreement during this period. Interest on outstanding balances will continue to run.
- On request, the IRS will hold (and not close) pending offers to July 15th to allow those Taxpayers whose financial situations have deteriorated to submit updated financial information to amend their Offers-in-Compromise. Taxpayers may suspend payments until July 15th,a nd no Offers will be defaulted for failing to file 2018 or 2019 tax documents or failing to make payments. However, all delinquent documents and payment must be made up by July 15, 2020.
- The IRS will continue to process new offers-in-compromises and new installment agreement requests it receives.
- No new field or desk audits will be started during this period.
- Appeals will continue to hold telephonic hearings.
For taxpayers who have had a change in circumstances, now would be a good time to revisit a payment plan or consider an Offer-in-Compromise. If you or someone you know has a tax issue please contact me at (203) 285-8545 or by email at firstname.lastname@example.org.
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