Irs Pause Installment Agreement

IRS Pauses Installment Agreement: What You Need to Know

The Internal Revenue Service (IRS) has recently announced that it will temporarily stop sending notices to taxpayers who have unpaid federal taxes, and also pause existing installment agreements until July 15th, 2020. This decision was made as a response to the ongoing COVID-19 pandemic and its effects on taxpayers.

If you currently have an installment agreement in place with the IRS for unpaid federal taxes, you don`t need to make payments until July 15th. However, interest and penalties will still accrue during this time, so it`s important to make payments as soon as you`re able to avoid additional fees.

The IRS is also suspending the issuance of liens and levies during this period, except in cases where the government`s interest is at risk. If you`re concerned about a possible lien or levy, contact the IRS to discuss your payment options.

Additionally, the IRS is temporarily halting its collection efforts, including sending out automated collection notices, until July 15th. This means you won`t receive any collection notices until after that date.

If you`ve received a notice of intent to levy or have a pending levy action, it`s important to seek professional advice and contact the IRS immediately. You may be eligible for a temporary suspension of collection activity or other payment options.

If you`re unable to make payments on your installment agreement due to financial hardship caused by the COVID-19 pandemic, you may be eligible for relief under the IRS`s “Fresh Start” program. This program offers several options for those struggling to pay their taxes, including installment agreements, offers in compromise, and currently not collectible status.

The IRS has also extended the deadline for filing 2019 tax returns until July 15th, 2020. If you haven`t yet filed your taxes for last year, now is the time to do so to avoid additional penalties and interest.

In summary, if you currently have an installment agreement with the IRS for unpaid federal taxes, your payments will be paused until July 15th, but interest and penalties will still accrue. The IRS is also suspending its collection efforts and issuing of liens and levies during this time. If you`re experiencing financial hardship due to COVID-19, you may be eligible for relief under the Fresh Start program.

If you have any questions or concerns about your tax situation, contact a tax professional for guidance and assistance. Stay safe and stay informed.

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