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Relief for Taxpayers Struggling with Tax Debt During COVID-19


The IRS recently made a number of changes to its tax collection policies in an effort to help taxpayers who have been impacted by COVID-19, more easily settle their tax debts. For instance, many taxpayers have been given an additional 60 days to resolve their debts, while those who satisfy certain requirements can set up installment agreements without having to submit financial statements and other standard paperwork. To learn more about the new options for payment agreements and potential alternatives to resolving tax debt during this tumultuous time, please call an experienced Florida IRS installment agreement lawyer who can evaluate your case and advise you accordingly.

The Taxpayer Relief Initiative

Taxpayers who owe the IRS have always had options for settling their debts through payment plans. The new IRS Taxpayer Relief Initiative, however, is expanding existing tools even more to help taxpayers whose finances have been impacted by the COVID-19 pandemic, resolve the balances they owe. For instance, a variety of collection procedures have been amended, so taxpayers who qualify for short-term payment plans now have six months to resolve their tax debt, rather than the standard four months. The IRS has also agreed to add certain tax balances to existing installment agreements for taxpayers who are temporarily unable to meet their payment terms due to the recent economic downturn.

Installment Agreements

Under the recently implemented changes, qualified individual taxpayers who owe less than $250,000 are now permitted to set up installment agreements without:

  • Having to provide a statement substantiating their financial situation, as long as their monthly payment proposal is sufficient; or
  • Receiving a notice of federal tax lien from the IRS.

Similarly, taxpayers who have already entered into existing Direct Debit Installment Agreements with the IRS are now allowed to use the Online Payment Agreement system to change their due dates and lower monthly payment amounts until their financial situations improve.

Other Options for Taxpayers Who Owe Taxes

Installment agreements are not the only tools available to taxpayers who owe taxes, as taxpayers whose finances have been impacted by the pandemic also have the option of:

  • Requesting a deferment, or the temporary delay of the collection process;
  • Applying for an Offer in Compromise, which allows taxpayers to settle their debt for less than they actually owe; and
  • Applying for relief from failure-to-pay penalties.

Besides offering these forms of relief and expanding taxpayer access to installment agreements, the IRS is also giving taxpayers without income the opportunity to request a temporary suspension of collection activity through the Currently-Not-Collectible program.

Do You Have Unresolved Tax Debt?

To find out whether you qualify for an installment agreement under the IRS’ new COVID-19-related tax relief initiative, please call experienced Florida & IRS tax debt & installment agreement lawyer Ronald Cutler, P.A. at 386-490-9949. We don’t charge for initial consultations, so if you have questions about IRS collection procedures or another pressing tax matter, don’t hesitate to call our office or send us an online message.