The IRS recently announced a new tax relief program, the Taxpayer Relief Initiative, to help Americans who may be struggling due to economic challenges caused by the pandemic.
The program provides additional relief options to taxpayers who owe back taxes they cannot afford to pay (IRC-2020-248). New guidelines also make it easier for certain Americans to qualify for Fresh Start Programs that reduce or even completely erase their tax debts.
Qualify for the Fresh Start Program by taking our short survey here.
The highlights of the Taxpayer Relief Initiative, according to the IRS:
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Taxpayers who cannot pay can contact the IRS to request a temporary halt in collection efforts.
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Certain taxpayers who owe less than $250,000 may be able to set up installment agreements without providing a financial statement.
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Some taxpayers who owe only 2023 taxes may qualify to set up an installment agreement without having a tax lien filed by the IRS.
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Short-term payment plans are extended from 120 to 180 days to pay in full.
Unfortunately, navigating through the various guidelines can be confusing and IRS instructions are next to impossible to decipher. While there are fees associated with hiring a tax professional, it may save you money and time.
“When you’re dealing with the IRS, it’s almost always worth it to get professional help from a tax attorney or enrolled agent. The same exact case can be accepted or denied by different IRS examiners — it’s all in the presentation.” said Michael McKeon , CEO of SoNerdly, a financial services comparison website for consumers.
What’s next?
- Take our short survey to see if you qualify for tax relief under the new guidelines.
- Learn more about tax relief by visiting our resources.