The IRS unveiled the People First Initiative in response to the Coronavirus crisis.

Due to the ongoing changes with COVID-19, the IRS unveiled adjustments to their compliance program. The projected state date of these will be April 1st and the effort will initially run through July 15th. The key pieces to these changes are as follows:

  • Existing Installment Agreements – For Taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Deposit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.
  • Offers in Compromise
    • Pending OIC Applications – The IRS will allow taxpayers until July 15 to provide requested additional information to support a pending OIC. In addition, the IRS will not close any pending OIC request before July 15, 2020, without the taxpayer’s consent.
    • OIC payments – Taxpayers have the option of suspending all payments on accepted OICs until July 15, 2020, although by law interest will continue to accrue on any unpaid balances.
  • Delinquent Return Filings – The IRS will not default an OIC for those taxpayers who are delinquent in filing their return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020.
  • Non-Filers – The IRS reminds people who have not filed their return for tax years before 2019 that they should file their delinquent returns.
  • Field Collection Activities – Liens and levies (including any seizures of a personal residence) initiated by field Revenue Officers will be suspended during this period. However, field Revenue Officer will continue to pursue high-income non-filers and perform other similar activities where warranted.
  • Automated Liens and Levies – New automatic systemic liens and levies will be suspended during this period.
  • Independent Office of Appeals – Appeals employees will continue to work their cases. Taxpayers are encouraged to promptly respond to any outstanding requests for information for all cases in the Independent Office of Appeals.