The COVID-19 pandemic continues to disrupt nearly all facets of life, but new IRS response efforts are creating opportunities for taxpayers to resolve their federal tax debt. The Taxpayer Relief Initiative expands access to existing tax resolution programs. Qualifying taxpayers may be able to negotiate more favorable Installment Agreement terms or even avoid the filing of a Notice of Federal Tax Lien. Not all taxpayers will qualify for this relief, but the IRS’ new initiative provides an opportunity for many to negotiate a more favorable resolution.
Highlights of the Taxpayer Relief Initiative include:
- Taxpayers requiring additional time to either pay their tax liabilities in full or meet the payment terms of an accepted Offer in Compromise may qualify for additional time to meet these obligations.
- Taxpayers who owe less than $250,000 may be able to enter into an Installment Agreement without completing a financial statement or substantiating income and expenses.
- Taxpayers who owe less than $250,000 for tax year 2019 only may qualify to enter into an Installment Agreement without the IRS filing a Notice of Federal Tax Lien.
- Taxpayers with existing Direct Debit Installment Agreements may be able to negotiate lower monthly payments and make changes to payment due dates.
The Taxpayer Relief Initiative does not create new programs, but it creates opportunities for many taxpayers to achieve more favorable resolutions for their federal tax debt. Qualifying taxpayers should act quickly to take advantage of the IRS’ relief efforts. The tax attorneys at McLaughlinQuinn LLC regularly represent taxpayers to resolve federal and state tax debt and continue to employ the latest government relief efforts to negotiate the best resolutions for our clients. For more information on this newsletter, contact Thomas P. Quinn, Esq., Managing Partner, at (401) 421-5115, ext. 218 or via email at