2020 has been a challenging year for many of us. With natural disasters and a global pandemic, the IRS is doing their part in helping struggling taxpayers. On November 2, 2020, the IRS announced the Taxpayer Relief Initiative, which aims to help individuals and businesses struggling to pay their tax debt. The Initiative provides help for those whose financial situation has declined this year by offering simplified payment terms, streamlined application processes, expanded no lien payment plans, and an increased focus on penalty relief. The program is available to taxpayers who have a record of filing their returns and paying their taxes on time.
Highlights of the Taxpayer Relief Initiative
Here is a breakdown of the Taxpayer Relief Initiative.
- Short-term payment plan options may now have up to 180 days to resolve their tax liabilities instead of the typical 120 days.
- Taxpayers who are temporarily incapable of meeting the payment terms of an accepted offer in compromise will be given more flexibility.
- The IRS will add specific new tax balances to existing installment agreements for individual and business taxpayers who have gone out of business. This will help taxpayers to not default on their installment agreements.
- Taxpayers who don’t have the means to pay their tax debt might get a temporary pause in collection efforts.
Additional Tax Debt Relief Options
The IRS also offers several different options to help taxpayers pay their debt.
Temporarily Delaying Collection
If you’re unable to pay your tax debt, US Tax Shield can work on your behalf and the IRS may grant a temporary delay of the collection until your financial condition improves.
An OIC (Offer In Compromise) allows you to settle your tax debt for less than the full amount you owe. Before approving you for an OIC, the IRS will look at a few different factors to determine if your eligibility. At US Tax Shield, we’ll submit an Offer in Compromise to the IRS on your behalf, showing that you have exhausted all other payment options or that your tax liability is incorrect.
First-time penalty abatement relief is available for taxpayers who are subject to tax penalties. Our experienced tax professionals may be able to reduce your penalties, potentially reducing your total debt considerably.
Contact America’s Top Tax Experts
As America’s top tax experts, US Tax Shield is dedicated to helping to reduce or resolve your tax debt with the IRS. We want you to be aware of your options. Work with a trusted tax lawyer so you can keep as much as your hard-earned money as possible. Contact US Tax Shield today at (877) 829-3535 for your free no-obligation consultation.
