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Need to set up a tax payment agreement? Teipen can help with that.

Posted on April 2, 2021

For years, the IRS has had a reputation for being resolute when it came to paying tax debts plus interest. But this year, the IRS has announced a number of changes specifically designed to help those experiencing a COVID-related financial hardship to more easily settle tax debt.

According to IRS Commissioner Chuck Rettig, “Following up on our People First Initiative earlier this year, this next phase of our efforts will help with further taxpayer relief efforts.”

The experienced staff at Teipen CPA Group is ready to help you benefit from all applicable 2021 tax relief initiatives and other helpful IRS programs.

Here’s what’s new in the IRS Taxpayer Relief Initiative:

  • The 2020 federal and state income tax filing due date for individuals has been extended from April 15, 2021, to May 17, 2021.
  • Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities (instead of 120 days).
  • The IRS offers flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
  • The IRS is authorized to automatically add certain new tax balances to existing Installment Agreements for unemployed individuals. This taxpayer-friendly approach will occur instead of defaulting the agreement, which can complicate matters for those trying to pay their taxes.
  • To reduce burden, certain qualified individual taxpayers 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.
  • Qualifying taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.
  • Additionally, qualified taxpayers with existing Direct Debit Installment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment amounts and change their payment due dates.

Throughout 2020 and into 2021, the IRS has continued to adjust tax collection operations to help ensure a safety net for taxpayers. More information and background on the collection relief and procedures can be found at “A Closer Look” at IRS.gov.

If you are having an employment-related or COVID-related tax repayment issue, let your CPA know – especially if you receive an IRS notice in the mail. Our CPAs understand tax issues inside and out. We know that dealing with the IRS can be intimidating, which is why we are here to help on your behalf.