IRS Unveils New Taxpayer Relief Initiative

Posted on January 15, 2024

The IRS has unveiled its new “Taxpayer Relief Initiative,” which is designed to help struggling Taxpayers impacted by COVID-19 more easily settle their tax debts.  Highlights of the initiative include the following:

1. Taxpayers who qualify for a short-term payment plan option may now have up to 180 days (instead of 120 days) to resolve their tax liability

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2. The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted offer in compromise

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3. The IRS will automatically add certain new tax balances to existing installment agreements with individual and out-of-business taxpayers

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4. Certain qualified individuals who owe less than $250,000 may set up installment agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient

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5. Some individuals who only owe for 2019 and who owe less than $250,000 may qualify for an installment agreement. Without a notice of federal tax lien filed by the IRS.  News Release IR 2020-248.