The Internal Revenue Service recently issued some new and updated guidelines for taxpayers who have tax debt but can not pay in full. These new guidelines include allowing taxpayers (who qualify) a short-term payment option of 180 days (previously it was 120 days).

If a taxpayer has an existing installment plan for back taxes and owes money for 2019 taxes, then the IRS can automatically add the 2019 balance on to the existing installment plan. A taxpayer with an existing installment plan may now be able to use the Online Payment Agreement system to propose a lower monthly amount and change their payment due dates.

A First-time penalty abatement is also available to taxpayers who may be subject to a late filing or a late payment penalty.

Due to the pandemic, this is now an ideal time to work a favorable resolution with the IRS for taxes that are owed. But You Must Communicate with the IRS!