While the stimulus bill is still going through congress, the IRS has acted on its own to modify collections of past due tax balances. The projected effective dates will run from April 1 through July 15. Below are the highlights of the People First Initiative:
- Existing installment agreements and offers in compromise agreements with payments due during this time are suspended and no installment or offer in compromise agreements will default during this time. Interest will continue to accrue. If a direct deposit agreement has been set up, the Taxpayer will have to suspend payments through the IRS website manually.
- New installment agreements and offers in compromise can still be established.
- No pending offers in compromise will close during this time without taxpayer consent.
- Liens and levies initiated by field revenue officers will be suspended during this time EXCEPT for high-income Taxpayers.
- New liens and levies will not be issued during this time.
- The IRS will suspend the Passport Certification Program with the Department of State during this time.
- New delinquent accounts will not be forwarded to private debt collection agencies during this time.
- No new field, office, or correspondence examinations will be initiated during this time. In-person meetings will be suspended. However, if a Taxpayer wishes to force an audit to begin during this time, due to concern employees key to the audit will not be available at a later date, the IRS will comply.
- During this time, the IRS will not deny the Earned Income Tax Credit for failure to provide wage income.
- Unless a statute is set to expire during 2020 (collection or assessment only), the IRS will not be pursuing Notices of Deficiency or pursue other actions to extend the statute of limitations during this time.
- Appeals employees will continue to work on their cases during this time. No additional time is being granted at this time.
The full details of the People First Initiative can be found at: https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program.